Wagner funnels $2.5 billion in 'blood gold' to Russia’s war chest as it rebrands and expands in Africa

By EJ Ward

The Wagner Group has generated over $2.5 billion from illegal gold mining since the start of the Ukraine invasion, according to a report by the World Gold Council.

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At the same time, the Russian mercenary organisation has launched a glossy recruitment campaign to bolster its operations in Africa, following its most significant defeat outside Ukraine, as turmoil deepens in nations like Sudan.

Authored by former UK Deputy Prime Minister Dominic Raab, the World Gold Council’s report details how funds from unlawful gold mining in Africa are channelled to support Russia’s war efforts.

These revenues also finance Wagner’s operations in resource-rich African nations, where the group has thrived since 2018 by propping up fragile regimes and securing access to natural resources, despite widespread allegations of human rights abuses, including torture and murder.

The report warns that illicit gold mining not only finances conflicts but fuels civil wars, organised crime, and extremism, benefiting groups like the Islamic State and Al-Qaeda in the Sahel region.

In Sudan alone, illegal gold mining has reportedly cost the country nearly $2 billion in lost revenue, while globally, artisanal and small-scale mining, which accounts for 20% of annual gold production, remains rife with hazardous practices such as child labour and mercury use.

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While the Wagner Group capitalises on these lucrative ventures, it has recently faced significant challenges.

A newly released recruitment video portrays Wagner’s African operations as technologically advanced and low-risk, featuring scenes of camouflaged fighters firing weapons, operating drones, and driving tanks.

The video concludes with the tagline, “We are where Russia needs us,” alongside a scannable code for “Africa Corps,” Wagner’s rebranded division following the death of its founder, Yevgeny Prigozhin, in August 2023.

However, the group has suffered heavy losses. In July, an ambush near Mali’s border with Algeria killed at least 44 Wagner operatives and allied Malian troops.

Subsequent attacks in Mali’s capital, Bamako, in September further eroded Wagner’s claim to be a superior security partner compared to the French and UN forces it replaced.

Currently, Wagner operates with an estimated 1,500 mercenaries in Mali, 400 in Burkina Faso, and 100 in Niger. Despite its setbacks, Wagner’s African expansion continues under the Kremlin’s control, following its absorption into Russia’s Ministry of Defence.

Recent deals include deploying a 200-strong unit to oil-rich Equatorial Guinea under its new "Africa Corps" branding.

The strategic importance of Sudan, a focal point for Wagner’s activities, is underscored by its location at the crossroads of the Indian Ocean, the Horn of Africa, and the Arab world.

Russia is vying for influence in the ongoing 19-month conflict by backing both the national army and the paramilitary Rapid Support Forces (RSF). Moscow has also supplied arms to the Sudanese army while supporting the RSF, which receives backing from the UAE.

On Monday, Russia vetoed a UN resolution calling for an immediate ceasefire in Sudan, with Moscow the sole member of the Security Council to oppose the measure.

Foreign Secretary David Lammy, condemned the veto as “a disgrace,” while Dmitry Polyansky, Russia’s deputy UN ambassador, defended the decision, citing concerns over Sudan’s sovereignty.

Aside from Russia, all the other 14 Security Council member states voted in favour of the draft, but the veto meant the resolution did not pass.

"This Russian veto is a disgrace and it shows to the world yet again Russia’s true colours," Lammy told the meeting in New York.

As Wagner grapples with operational challenges and geopolitical tensions, the World Gold Council’s report underscores the broader consequences of illegal gold mining, from fuelling conflicts to enabling organised crime.

The report recommends actions such as International Criminal Court investigations into Wagner’s illicit trade, stronger Interpol border controls, and sanctions targeting officials collaborating with the group.

Additionally, the report urges G7 and G20 nations to classify illicit gold flows as a systemic threat to international security, a designation that could disrupt Wagner’s financial lifeline.

According to The Blood Gold Report:

In the Central African Republic (CAR), a Wagner front company has been awarded exclusive rights to the Ndassima mine, the country’s largest gold mine, in return for propping up an authoritarian regime.

In Sudan, “the Russian company” controls a major refinery that has allowed Wagner to become the dominant buyer of unprocessed Sudanese gold, with multiple accounts of Russian military transport planes shipping processed gold out of the country.

In Mali, Russian mercenaries are paid in cash – US$10.8 million per month according to US Intelligence – by a military junta that relies on a small number of international mining companies for the majority of its tax revenue. Canada’s Barrick Gold – the country’s top taxpayer – paid US$206 million to the junta in the first half of 2023 alone.