Washington is pressuring its Middle East allies to push the Wagner Group, a Russian paramilitary, out of Sudan and Libya. EPA
Washington is pressuring its Middle East allies to push the Wagner Group, a Russian paramilitary, out of Sudan and Libya. EPA
Washington is pressuring its Middle East allies to push the Wagner Group, a Russian paramilitary, out of Sudan and Libya. EPA
Washington is pressuring its Middle East allies to push the Wagner Group, a Russian paramilitary, out of Sudan and Libya. EPA

US seeks to expel Wagner Group from Sudan and Libya


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The US has stepped up pressure on its Middle East allies to expel the Wagner Group — a military contractor owned by an oligarch with close ties to Russia’s President — from chaos-stricken Libya and Sudan, where it has expanded in recent years, regional officials told The Associated Press.

The US effort described by officials comes as President Joe Biden's administration is making a broad push against the mercenaries. The US has slapped new sanctions on the Wagner Group in recent months over its expanding role in Russia's war in Ukraine.

The group does not announce its operations, but its presence is known from reports on the ground and other evidence.

In Sudan, it was originally associated with former strongman Omar Al Bashir and now works with the military leaders who replaced him. In Libya, it is associated with eastern Libya-based military commander Field Marshal Khalifa Haftar.

Wagner has sent thousands of operatives to African and Middle East countries including Mali, Libya, Sudan, the Central African Republic and Syria.

“Wagner tends to target countries with natural resources that can be used for Moscow’s objectives -— gold mines in Sudan, for example, where the resulting gold can be sold in ways that circumvent Western sanctions,” said Catrina Doxsee, an expert on Wagner at the Washington-based Centre for Strategic and International Studies.

The group’s role in Libya and Sudan was central to talks between CIA Director William Burns and officials in Egypt and Libya in January. Secretary of State Antony Blinken also discussed the group with President Abdel Fattah El Sisi in a late-January trip to Cairo, Egyptian officials said.

The group and Russian oligarch Yevgeny Prigozhin have been under US sanctions since 2017, and the Biden administration in December announced new export restrictions on its access to technology and supplies, designating it as a “significant transnational criminal organisation”.

Sudan

Wagner started operating in Sudan in 2017, providing military training to intelligence and special forces, and to the paramilitary group known as the Rapid Support Forces, according to Sudanese officials and documents shared with the AP.

Wagner mercenaries are not operating in a combat role in Sudan, officials said. The group, which has dozens of operatives in the country, provides military and intelligence training, as well as surveillance and protection of sites and top officials.

The US is making efforts to convince power brokers in Libya and Sudan to expel the Russian private military company Wagner, regional officials tell The Associated Press. AP
The US is making efforts to convince power brokers in Libya and Sudan to expel the Russian private military company Wagner, regional officials tell The Associated Press. AP

Sudanese military leaders appear to have given Wagner control of gold mines in return. The documents show the group has received mining rights through front companies with ties to Sudan’s powerful military and the paramilitary Rapid Support Forces.

Two companies have been sanctioned by the US Treasury Department for acting as fronts for Wagner’s mining activities.

The main camp of Wagner mercenaries is in the contested village of Am Dafok on the border between the Central African Republic and Sudan, according to the Darfur Bar Association, a legal group that focuses on human rights.

Libya

In Libya, Mr Burns held talks in Tripoli with Prime Minister Abdul Hamid Dbeibeh, head of one of Libya's two rival governments.

The CIA director also met with Mr Haftar in eastern Libya, according to Libyan officials.

UN experts said Wagner mercenaries have been present Libya since 2018, helping Mr Haftar's forces in their fight against Islamist militants in the east. The group was also involved in his failed offensive on Tripoli in April 2019.

CIA Director Bill Burns held talks in Tripoli as the US is pressuring allies in the region to expel the Wagner Group from Sudan and Libya. Reuters
CIA Director Bill Burns held talks in Tripoli as the US is pressuring allies in the region to expel the Wagner Group from Sudan and Libya. Reuters

Since the 2020 ceasefire, Wagner's activities have centred around oil facilities in central Libya, and they have continued providing military training to Mr Haftar's forces, Libyan officials said. It is not clear how many Wagner mercenaries are still in Libya.

US officials have demanded that mercenaries be pulled out of oil facilities, another Libyan official said.

Mr Haftar did not offer any commitments, but asked for assurances that Turkey and the militias it backed in western Libya would not attack his forces in the coastal city of Sirte and other areas in the central part of the country.

Egypt, which has close ties with Mr Haftar, has demanded that Wagner not be stationed close to its borders.

There is no evidence yet that the Biden administration’s pressure has yielded results in either Sudan or Libya, observers said.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Chatto & Windus 

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Starring: Mark Ruffalo, Anne Hathaway, William Jackson Harper 

Rating: ****

Updated: February 03, 2023, 7:06 PM