Konstantin Pikalov was a Wagner leader who had helped set up another PMC, Konvoi, and been on several visits to Africa previously.
55 Konstantin Mirzayants, a former Russian paratrooper, is reported to head Redut. These figures, from the paramilitary world but considered loyal to the Kremlin, appear to have been unable to take control of the businesses in more challenging environments, such as the CAR. Arguably, Moscow still needed the entrepreneurial nature and flexibility of the Wagner business empire. Neither MoD representatives, such as Mirzayants, nor loyal businesspeople, such as Rotenberg, seem to have been able to replicate Prigozhin’s model.
A change of direction? The Africa AllianceIn any case, another new initiative of the Kremlin seemed to be going in a different direction. According to multiple current and former Wagner sources, the Russian authorities decided to set up a dedicated structure to implement a new approach toward economic engagement in Africa. Described as “a structured interface for Russian businesses to work in Africa,” the Africa Alliance (AA) is meant to carry out “political technology projects” in particular and “soft power” in general, with the aim of “increasing the political influence of the Russian Federation and creating favorable conditions for the participation of the Russian Federation in state infrastructure projects.” Among its reported tasks is the “implementation of diverse humanitarian projects aimed at fostering a positive image of the Russian Federation while simultaneously strengthening its position in civil society and developing networks that include agents of influence.”
56 Thus, the AA appears to be a hybrid between the development departments and ministries of Western countries and Soviet development aid. Our source acknowledges that ultimately the aim is to gain “higher priority access to infrastructure projects.” What is innovative, however, is the linkage to Africa Corps and the PMC/PSC department of the MoD: the idea is to bring stability and development to Africa.
57 The new structure was still being developed as of January 2024, but it brought together former specialists from Prigozhin’s networks and structures associated with government agencies in the areas of culture, education, mass information and public medicine. There was no indication at the start that a fixed, centralized, vertical structure was the goal, though groups had already been set up to work on different projects.
58 Lacking an overall strategic goal, the AA responds to immediate tasks at hand. There are multiple, sometimes duplicative, groups. On the other hand, such features may make AA more adaptable and flexible down the road. But such features also make financing more complicated, as any one structure will have to be funded from multiple budget sources.
59The AA might have been in incubation for years. In 2021 the High College of the Economy in Moscow published a report in cooperation with the Russian ministry of Foreign Affairs, The Duma’s Committee for International Affairs and the Council for Foreign Policy and Defence.
60 The report criticised the lack of a real Russian strategy in Africa and criticised reliance on hybrid actors and “political adventurers” acting under the Russian flag, seemingly referring to Wagner. The report noted that this erratic approach resulted in these actors benefiting from the state budget, operating with precarious means, attracting a disproportionate attention on Western media and hurting Russia’s image.
61At the time of this writing, the Russian authorities had not gone public with the AA initiative yet and the structure was only being mentioned by current and former Wagnerites. As portrayed by these sources, the AA could represent a long-term strategy that differs significantly from Wagner’s own original plans.
62 Yet it is likely that any such state-led initiative will struggle to make headway. Russia has no resources to fund significant development aid, while it is keen not to repeat the Cold War experience of providing billions of dollars in aid to African countries for limited political gain. Although it has forgiven more than $20 billion of Soviet-era loans, its direct development aid to Africa is tiny, amounting to no more than $27 million in annual spending in the period 2012-17. Moreover, Russia makes minimal contributions to UN programs. Moscow does not even have a dedicated development agency, with most aid comprising ad hoc contributions on a bilateral basis.
63Russian investment in Africa is also small – less than 1% of total foreign direct investment goes to Africa – and Russian-African trade amounts to less than $20 billion. Russia has tried to boost economic engagement through new initiatives. In 2019, Russian conservative ideologue and businessman Konstantin Malofeev announced the creation of the International Agency of Sovereign Development (IASD), designed to be a new Russian investment platform that would broker deals between Russian companies and African governments. It was reported to have agreed to finance $2.5 billion of infrastructure deals in several African countries, including Niger, DR Congo and Guinea.
64 But after an initial flurry of publicity, the IASD disappeared from the news.
Smooth transition away from Wagner in Syria and LibyaIn Syria, Wagner was quickly ousted from both military roles and civilian business. Its forces were told either to sign contracts with the Russian MoD or leave.
65 Its companies were seized in exchange for a commitment by the Syrian government to pay back an undisclosed sum to Wagner Group.
66 Wagner accused then-Defense Minister Shoigu “and some of his close friends” of having taken over the companies, although at the same time a plan, supported by Putin himself, to inject $2 billion into these industries was mentioned.
67 The plan suggests something more than a mere redistribution of assets between shadowy economic actors. Reportedly, the Russian government was working with the Syrian government to bring the different companies working in the oil and gas sector under one “corporate umbrella,” with the Syrian government being the driving force in this effort.
68 Even in Syria, however, simply replacing Wagner Group like this soon appeared unlikely to be a viable option. The Syrian authorities seemed dissatisfied, aiming instead at reclaiming some of the oil and gas business for themselves.
69As for the military and security dimensions of Wagner’s operation in Syria, Redut took over many them, including guarding Russian investments, carrying out special operations and even recruiting for the Syrian government.
70 The fact that the Russian armed forces had a significant presence and that Redut was already on the ground made it easier to replace Wagner.
71 Still, though the Russian authorities and Russian companies were pushing for Redut to take over Wagner’s role in Syria entirely, the Syrian government resisted, no longer keen on having foreign PMCs on its soil at all.
72The passing of the torch went relatively smoothly in Libya too. Early after the mutiny, a Russian envoy rushed to Libya to reassure Khalifa Haftar that some 2,000 Russian fighters, technicians, political operatives and administrators deployed by Wagner in the country would stay, notwithstanding some “changes at the top,” according to a Libyan source recounting a meeting with a Russian envoy. Everything else would stay the same, including "the people on the ground, the money men in Dubai, the contacts and the resources committed to Libya.”
73 As in Syria, Redut obtained the contract for training local, Libyan National Army forces, supporting them militarily, gathering intelligence and protecting oil and gas sites.
74 But in other areas, the Wagner operation was taken over by 1,000-1,500 troops reportedly badged as the Africa Corps.
75 In Libya, the ongoing ceasefire made the transition to PMC department control rather straightforward.
76Compromise in MaliForeign minister Sergei Lavrov was quick to reassure the Malian government in the summer of 2023 that Russia remained committed to its mission in the country.
77 In Mali, Wagner’s typical business of bartering security for gold mines had been slow to get off the ground. Instead, the Malian government was paying cash to Wagner for its military presence, as much as $200 million between late 2021 and mid-2023, according to US sources.
78 Unlike Libya and Syria, the Russian authorities appear to have been forced to let Wagner keep operating in Mali, perhaps partly because it feared that other actors closer to the MoD would get dragged into a potentially risky situation.
There was also a lack of enthusiasm for MoD contracts, whether directly with the PMC department or Redut. The Malian government resisted too.
79 In Mali, Wagner’s position was strengthened by the offensives that it successfully led in autumn 2023 in the north of the country, capturing Ber, Anefif, Tessalit and Kidal from the militias of the “Cadre stratégique permanent,” which has been at war with the Malian government since August 2023.
80Lengthy talks ensued between the Malian president, the Malian minister of defense, and the main Russian interlocutor, Andrei Averyanov, the GRU General running among other things the MoD PMC department, as well as Konstantin Pikalov from Wagner and Konstantin Mirzayants from Redut. The Russians advocated the wholesale transfer of Wagner staff in Mali to Redut, a proposition still being pursued in early February 2024.
81 A meeting with Defense Minister Colonel Sadio Camara and Air Force Chief of Staff Colonel Alou Boi Diarra eventually led to a settlement, it was reported. The Russian MoD agreed to keep Wagner in Mali, but the latter agreed to operate under some degree of MoD control. The MoD in particular insisted on having a role in choosing the commanders without taking into account the opinions of the units themselves, as it used to be under Prigozhin.
82 In other words, Wagner’s mercenary status in Mali has not changed, but the administrative procedures governing the contingent have.
83One source within Wagner quantified the terms of the deal as the Russian MoD gaining direct control over 20% of the contract and Wagner retaining 80% of it.
84 In 2020-23, Wagner in Mali was renting heavy weaponry from the MoD, but after the settlement was reached the MoD started providing it, along with ammunition, for free. This contributed to the MoD gaining more say. As of late February 2024, Wagner Group was coordinating with Russian military officers, even if