Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is designating two individuals and four entities that form a core part of Specially Designated National (SDN) and Republika Srpska (RS) President Milorad Dodik’s (Dodik) patronage network. Members of this network, which include Dodik’s adult children, facilitate Dodik’s ongoing corruption in Bosnia and Herzegovina’s (BiH) RS entity, allowing him to siphon public funds from the RS and enrich himself and his family at the expense of BiH citizens and functional governance in the country.
Dodik previously served as a member of BiH’s Presidency and is widely known for openly calling for, and supporting, the unilateral transfer of state competencies from the BiH government to the RS, one of two entities that comprise BiH. Dodik has used his official BiH position and a network of personal ties and companies to accumulate personal wealth through graft, bribery, and other forms of corruption. His divisive ethno-nationalistic rhetoric reflects his efforts to advance these political goals and divert attention from his corrupt activities. Additionally, Dodik has publicly denigrated other ethnic and religious groups within BiH, further sowing division and political gridlock.
“With the financial and political support of the individuals and entities designated today, Dodik has engaged in corruption that ensures his personal financial and political stability at the expense of BiH citizens living in Republika Srpska,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “We will continue to hold accountable those whose actions contribute to the degradation and undermining of institutions in BiH and the Western Balkans, as well as the undermining of the Dayton Peace Agreement.”
The United States designated Dodik on January 5, 2022 pursuant to E.O. 14033 for being responsible for or complicit in, or having directly or indirectly engaged in, a violation of, or an act that has obstructed or threatened the implementation of, the Dayton Peace Agreement (DPA), as well as for corrupt activities. The United States also previously designated Dodik on July 17, 2017 pursuant to E.O. 13304 for obstructing the DPA.
Most recently, Dodik sponsored the passage of a June 2023 RS National Assembly (RSNA) law entitled the “Law on the Non-Application of the Decisions of the BiH CC in the RSNA” that purports to declare the decisions of the BiH Constitutional Court (BiH CC) inapplicable in the RS, thus obstructing and threatening the implementation of the DPA. The High Representative in BiH exercised his authority in July 2023 to nullify the legislation, publicly condemning the law as undermining regional constitutional order, rule of law, and the division of powers. Dodik signed the law into effect on July 7, 2023, despite the High Representative’s action to annul the law. Consequently, the highest judicial body in Bosnia and Herzegovina brought an indictment against Dodik for ignoring these decisions.
Today’s designations build on prior U.S. sanctions and visa restrictions designed to promote accountability for persons who contribute to corruption and undermine democratic processes or institutions. These actions are part of the U.S. government’s wider efforts to promote peace, stability, and functional democratic governance in the Western Balkans region.
MILORAD DODIK’S FAMILY MEMBERS AND COMPANIES FACILITATING DODIK’S ACTIVITIES AND CONCEALED REVENUE STREAMS
Since 2021, Dodik has increased the involvement of his son, Igor Dodik (Igor), and daughter, Gorica Dodik (Gorica), in political and business activities within the RS, causing concern that the RS was becoming more like a Dodik family business rather than a political entity of BiH. The extent of the Dodik family’s corruption has also drawn concern from nations interested in providing foreign investment funds to the RS, leading some to refrain from doing so because they believed that any financial assistance would likely go to Dodik and his family rather than RS institutions.
In a recent RS election, the Alliance of Independent Social Democrats (SNSD), including Dodik and Igor, conspired to bribe political officials, polling station members, and election observers in effort to corruptly win the election. Igor engaged in bribery of opposition politicians, who were offered political appointments in exchange for critical information and election observer positions at polling locations.
Dodik’s daughter, Gorica, is involved in handling political and business activities for her father, to include owning several entities that receive substantial RS government assistance at Dodik’s direction.
OFAC is designating Igor pursuant to E.O. 14033 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Dodik, a person whose property and interests in property are blocked pursuant to E.O. 14033.
OFAC is designating Gorica pursuant to E.O. 14033 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Dodik, a person whose property and interests in property are blocked pursuant to E.O. 14033.
RS-based businesses Global Liberty d.o.o. Laktasi (Global Liberty), Agro Voce d.o.o. Laktasi (Agro Voce), Agape Gorica Dodik i Ivana Dodik s.p. Banja Luka (Agape), and Fruit Eco d.o.o. Gradiska (Gradiska) are a collection of commercial entities operating in the BiH, including operations in the restaurant and wholesale materials sectors. All these entities receive RS public assistance through preferential treatment as a result of being owned by Dodik’s family.
OFAC is designating Global Liberty for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Igor and Gorica.
OFAC is designating Agro Voce and Agape for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Gorica.
OFAC is designating Gradiska for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Igor.
SANCTIONS IMPLICATIONS
As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. All transactions by U.S. persons within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person, or the receipt of any contribution or provision of funds, goods, or services from any such person.
In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned individuals may expose themselves to sanctions or be subject to an enforcement action.
Photo: Klix.ba
