Russia-Guatemala mining link in spotlight following OFAC sanctions

On 18 November, the US Treasury Department’s Office of Foreign Assets Control (‘OFAC’) imposed Magnitsky sanctions against Russian national, Dmitry Kudryakov, and Belarusian national, Iryna Litviniuk, for ‘their role in exploiting the Guatemalan mining sector’, as well as against ‘three associated entities connected with their corruption schemes.’

OFAC said that the three organisations – Compania Guatemalteca de Niquel, Compania Procesadora de Niquel, and Mayaniquel – function ‘as subsidiaries of the Solway Investment group, a Russian enterprise that has exploited Guatemalan mines since 2011. 

‘The leader of Solway’s mining operations in Guatemala, Russian national Dmitry Kudryakov, along with Belarusian national Iryna Litviniuk, allegedly led multiple bribery schemes over several years involving politicians, judges, and government officials. In addition, Litviniuk conducted corrupt acts in furtherance of Russian influence peddling schemes by unlawfully giving cash payments to public officials in exchange for support for Russian mining interests.’

OFAC said that Kudryakov and Litviniuk are designated pursuant to Executive Order ‘13818 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of corruption, including the misappropriation of state assets, corruption related to government contracts, or the extraction of natural resources, or bribery.’ 

Under-Secretary of the Treasury for Terrorism and Financial Intelligence, Brian E. Nelson said, ‘We stand with the people of Guatemala and support the protection of their country’s natural resources from external exploitation. We will use our tools to help ensure that corrupt profiteers face consequences for stealing from the Guatemalan people.’