United States imposes economic penalties on an armed faction and corporations reaping benefits from war-like minerals in Congo
In a move aimed at promoting peace and stability in the Democratic Republic of Congo (DRC), the U.S. State Department has frozen the assets of the PARECO-FF armed group and companies under U.S. control, and banned all transactions with them.
PARECO-FF, an armed group active since 2022 in eastern Congo, has been accused of controlling mining sites around Rubaya and generating income through illegal means such as overseeing mining operations, collecting fees and taxes, engaging in mineral smuggling, imposing forced labor, and executing civilians in mining areas under its control.
The mining site, located in the heart of eastern Congo, is a significant source of minerals such as tantalum, a component used in electronics. However, the minerals mined from conflict-affected areas are often smuggled through Rwanda to global markets, funding armed groups involved in human rights abuses including forced labor and child labor.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has also sanctioned entities linked to PARECO-FF’s mining operations, including East Rise Corporation, a Hong Kong-based trader, and other companies such as CDMC and Star Dragon. These companies purchased minerals, including tantalum, from PARECO-FF-controlled areas, financially benefiting armed actors and contributing to regional instability.
The sanctions highlight concerns over illicit mineral trade in eastern Congo and aim to disrupt these conflict mineral supply chains, support peace in the region, and encourage transparency and responsible investment.
The sanctions also address financial networks that facilitate mineral smuggling from conflict zones. The U.S. actions are part of a broader diplomatic effort supporting peace agreements and economic integration in the Great Lakes region of Africa.
However, the conflict in eastern Congo has escalated recently due to the resurgence of the Rwanda-backed M23, with renewed fighting threatening the peace agreement. Both Congo and the M23 rebels have accused each other of violating the agreement by attacking each other's forces. Rubaya, currently under the control of the M23 rebel group, is also targeted by U.S. sanctions.
The permanent peace deal between Congo and the M23 rebels is scheduled for Aug. 18. The U.S. government has expressed its hope that these sanctions will contribute to a peaceful resolution of the conflict and promote sustainable development in the region.
[1] Executive Order 13413: Strategy for Mitigating National Security Risks Posed by Conflict Minerals [2] U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC) - Sanctions Programmes and Country Information [3] U.S. Department of State - Democratic Republic of the Congo [4] Associated Press [5] Reuters
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