https://crsreports.congress.gov
March 13, 2023
Russia’s Wagner Private Military Company (PMC)
Russia utilizes private military companies (PMCs) to
project power globally. These outfits range in size and
scope and act as an unofficial (albeit nominally illegal) tool
of Russian foreign policy. PMCs also appear to pursue
semi-independent objectives, including monetary gain and
political advantage within Russia.
The most prominent Russian PMC is the Wagner Group,
headed by Kremlin-connected businessman Yevgeny
Prigozhin. Instead of a single entity, the Wagner Group is
more of an umbrella organization for multiple entities,
operations, and actors overseen by Prigozhin. During
Russia’s war in Ukraine since early 2022, the Wagner
Group’s role has increased and, in some areas, supplanted
that of the Russian military. Beyond Ukraine, Wagner
operates in multiple countries, particularly across Africa.
Wagner’s rise has resulted in increased competition from
other Russian agencies and political elites.
The U.S. Departments of State and the Treasury have
designated the Wagner Group and Prigozhin for sanctions
under multiple executive orders. In January 2023, the Biden
Administration designated Wagner a Transnational
Criminal Organization (TCO) and simultaneously
designated it under a sanctions program pertaining to the
Central African Republic (CAR).
Several bills in the 118
th
Congresses would seek to respond
to the Wagner Group through sanctions, reporting
requirements, and/or other measures. Considerations for
Congress include the impact of such measures on Wagner’s
operations, the extent to which the executive branch is
providing sufficient information to enable oversight, and
potential unintended consequences, as discussed below.
History
According to media reports, Wagner evolved out of earlier
Russian PMC outfits, including groups operating in Syria in
2013. During this time, Russia was experimenting with
PMCs, including their role and relationship to the state.
Russian military intelligence (GU) reportedly helped
establish and oversee the Wagner group, including creating
training centers near GU Spetsnaz (elite reconnaissance)
bases. Wagner reportedly has had tense relations with the
rest of the Russian Ministry of Defense, however (for
additional background see CRS In Focus IF11650, Russian
Private Military Companies (PMCs), by Andrew S.
Bowen).
Wagner first appeared as an entity in 2014, during Russia’s
seizure and occupation of Ukraine’s Crimea region. Wagner
was involved in Russia’s invasion of eastern Ukraine
through 2015, including carrying out alleged assassinations
of local rebel leaders. During this time and into 2016,
Wagner became involved in supporting Russia’s
intervention in Syria. In some cases, Wagner reportedly
worked in coordination with Russian special forces; in
others, it appeared to take a leading role coordinating
Syrian government forces.
Starting in the late 2010s, Wagner established operations in
several African countries, providing security services and,
in some cases, engaging in mining and other private sector
activities. These countries include the Central African
Republic, Libya, Mozambique, Mali, and Sudan.
Public-Private Partnership
The Wagner Group, and Russian PMCs more generally, are
emblematic of Russian public-private partnerships defined
by the delegation of limited governmental authority to
private entities. The Russian government provides partners
in these relationships opportunities and protection
unavailable to other businesses or people. The government,
in essence, loans authority to these private entities, provided
they operate at the behest of and according to the
government’s preferences. The U.S. Department of the
Treasury identifies the Wagner Group as “a designated
Russian Ministry of Defense proxy force,” despite it being
run by a private citizen. Such entities can pursue private or
commercial interests, but they must fulfill government
requests when called upon and ultimately remain under the
direction of the Russian government.
PMCs nominally remain illegal under Russian law. Despite
this, the Wagner Group registered as a legal entity in Russia
in December 2022, listing itself as a management
consultant company. Additionally, Wagner opened an
office building in St. Petersburg in November 2022.
Wagner’s ability to operate openly suggests high-level
official support.
Prigozhin Network and Organization
Prigozhin founded and reportedly funds and oversees the
Wagner Group. He is under U.S. sanctions and indictment
for numerous activities, including interference in the 2016
U.S. presidential election. Prigozhin denied operating the
Wagner Group (going so far as to sue journalists in the
United Kingdom for claiming that he did) until September
2022, when he publicly admitted founding it. Prigozhin also
reportedly oversees a broader network of entities beyond
Wagner, comprising, for example, the Internet Research
Agency, designated a “Russian troll farm” by the U.S.
Department of the Treasury. Several of these entities and
individuals connected to them also are subject to U.S.
sanctions.
Reports indicate Prigozhin financially benefits from some
of Wagner’s operations, particularly in Africa, where
