U.S. Treasury Sanctions State-Owned Gold Mining Firm
June 17, 2022—Citing Nicaragua’s closer ties with Russia and political oppression at home, the U.S. Treasury issued new sanctions today targeting a Nicaraguan mining company and a government official.
Specifically, it targets Empresa Nicaraguense de Minas (ENIMINAS), a state-owned gold-mining company, and Ruy Lopez Delgado, the head of the enterprise.
Nicaragua Welcomes Russian Military
The sanctions action comes just days after Nicaragua’s parliament approved a decree to allow Russian troops to enter the Central American country.
Nicaraguan President Daniel Ortega invited Russian troops into his country to carry out law enforcement duties and conduct joint military exercises, ABC News reported earlier this month.
Legislatures also approved “the entry of military personnel, ships and aircraft from Cuba, the United States, Mexico, Venezuela and other Central American countries for six months starting in July,” according to reporting by La Prensa Latina.
But many officials in Washington viewed the decision as a provocation.
US Response
Today’s action goes into detail about the role of the mining company, ENIMINAS, in funding Nicaragua’s government through gold exports. In its release, Treasury accuses the state-owned enterprise of enriching its government officials and offering kickbacks to private sector partners.
“As the Ortega-Murillo regime increasingly engages Russia and continues lining its coffers with significant revenue exploited from the Nicaraguan gold sector, the regime has turned its back on the Nicaraguan people, neglecting their livelihoods for regime gains,” said Brian E. Nelson, an undersecretary at Treasury. “The United States continues to stand with the Nicaraguan people against the unjust imprisonment of political opponents and the sustained assault on Nicaragua’s democracy by the Ortega-Murillo regime.”
It is unclear if the U.S. sanctions will impact the mining company directly or if there will be penalties on companies, such as Canadian company Calibre Mining, doing business with ENIMNAS.
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