[Joint House and Senate Hearing, 118 Congress]
[From the U.S. Government Publishing Office]
COUNTERING RUSSIA'S TERRORISTIC
MERCENARIES
=======================================================================
HEARING
BEFORE THE
COMMISSION ON SECURITY & COOPERATION IN EUROPE
U.S. HELSINKI COMMISSION
U.S. HOUSE OF REPRESENTATIVES
ONE HUNDRED EIGHTEENTH CONGRESS
SECOND SESSION
__________
MARCH 9, 2023
__________
Printed for the use of the Commission Security & Cooperation in Europe
[CSCE118-2]
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Available via www.csce.gov
__________
U.S. GOVERNMENT PUBLISHING OFFICE
51-584 WASHINGTON : 2023
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COMMISSION ON SECURITY & COOPERATION IN EUROPE
U.S. HELSINKI COMMISSION
U.S. HOUSE U.S SENATE
JOE WILSON, South Carolina Chairman BEN CARDIN, Maryland Co-Chairman
STEVE COHEN, Tennessee Ranking ROGER F. WICKER, Mississippi
Member Ranking Member
ROBERT B. ADERHOLT, Alabama RICHARD BLUMENTHAL, Connecticut
EMANUEL CLEAVER II, Missouri JOHN BOOZMAN, Arkansas
RUBEN GALLEGO, Arizona JEANNE SHAHEEN, New Hampshire
RICHARD HUDSON, North Carolina THOM TILLIS, North Carolina
MIKE LAWLER, New York SHELDON WHITEHOUSE, Rhode Island
GWEN MOORE, Wisconsin
VICTORIA SPARTZ, Indiana
MARC VEASEY, Texas
EXECUTIVE BRANCH
Department of State - to be appointed
Department of Defense - to be appointed
Department of Commerce - to be appointed
C O N T E N T S
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Page
COMMISSIONERS
Hon. Joe Wilson, Chairman, U.S. Senator From South Carolina...... 1
Hon. Steven Cohen, Ranking Member, U.S. Senator From Tennessee... 3
WITNESSES
Justyna Gudzowska, Director of Illicit Finance Policy, The Sentry 3
Jason Blazakis, Director, Middlebury Institute of International
Studies [MIIS] Center on Terrorism, Extremism, and
Counterterrorism [CTEC]........................................ 5
Jason Wright, Partner, Curtis, Mallet-Prevost, Colt & Mosle LLP.. 10
ADDITIONAL SUBMISSIONS FOR THE RECORD
Opening Statement Of Hon. Ben Cardin, Co-Chairman, U.S. House
From Maryland.................................................. 29
COUNTERING RUSSIA'S TERRORISTIC MERCENARIES
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COMMISSION ON SECURITY & COOPERATION IN
EUROPE,
U.S. HELSINKI COMMISSION,
HOUSE OF REPRESENTATIVES,
Thursday, March 9, 2023
The Hearing Was Held From 10:11 a.m. To 11:35 a.m., Room
2020 Rayburn House Office Building, Washington, DC,
Representative Joe Wilson [R-SC], Chairman, Commission for
Security and Cooperation in Europe, presiding.
Committee Members Present: Representative Joe Wilson [R-
SC], Chairman; Representative Steve Cohen [D-TN], Ranking
Member; Senator Jeanne Shaheen [D-NH]; Representative Victoria
Spartz [R-IN]; Senator Sheldon Whitehouse [D-RI];
Representative Mike Lawler [R-NY]; Senator Richard Blumenthal
[D-CT].
Witnesses: Justyna Gudzowska, Director of Illicit Finance
Policy, The Sentry; Jason Blazakis, Director, Middlebury
Institute of International Studies [MIIS] Center on Terrorism,
Extremism, and Counterterrorism [CTEC]; Jason Wright, Partner,
Curtis, Mallet-Prevost, Colt & Mosle LLP.
OPENING STATEMENT OF HON. JOE WILSON, CHAIRMAN, U.S. HOUSE FROM
SOUTH CAROLINA
Chairman Wilson: Ladies and gentlemen, representatives of
the Ukrainian embassy here in Washington, and friends of
democracy, I am just so grateful to have you here today, and
what an extraordinary time. The Commission will come to order.
Good morning to all of you who have joined us today.
It is real impressive, this is a full house. It actually is
an indication of the interest by the people of the United
States, obviously, Western civilization, of the interest that
there is in terms of opposing authoritarians around the world.
Again last night, the Ukraine National Information Service had
a reception here on Capitol Hill. I have been to a lot of
receptions, but I have never been to one where during the
course of it, because of people pressing against the windows
and doors as sardines, it was just--to see the resolve of so
many people, and the interest, and love, and affection that the
people of America have for the courage and inspiration of the
people of Ukraine.
Before we begin, I would like to acknowledge that we do
have embassy officials here. I want to thank them for coming.
Gosh, the Ukrainian embassy here in Washington, with the
Ambassador, has just made such a difference communicating with
the people of the United States. Commission members will be
coming and going. So grateful to me that it is bipartisan. On
the House side, I am grateful to work with Congressman Steve
Cohen, who's the ranking member on the Democratic side. Then
I'm grateful that our Senate colleagues, Senator Ben Cardin, is
going to be leading co-chair along with Senator Roger Wicker.
So people are coming and going. Then, as an indication of
why they are coming and going, it is--I was here last night for
an Education and Workforce Committee meeting until 2:00 in the
morning. So it is always a reminder to me that democracy is the
worst system there is, except for all the others. So--because
we should not be meeting at 2:00 in the morning, Okay? But that
is what is called reflecting the views of the people, and it
can lead to some level of inconvenience--understatement.
Today's hearing will focus on, gruesomely, the notorious
proxy war criminal Putin has deployed in Putin's murderous war
on the Ukrainian people. The Wagner Group, owned by Yevgeny
Prigozhin, is the organization that we will be discussing
today. This shadowy paramilitary organization operating in
Ukraine since 2014 has also served as a blunt instrument of the
Kremlin's murderous attacks across Africa in Mali, Sudan,
Libya, and the Central Africa Republic, as well as Syria. The
Wagner Group has spread terror far and wide, committing acts of
political violence resulting in the massacre of thousands of
civilians in mass atrocities, as in Bucha in Ukraine and Moura
in Mali. Wherever Wagner goes, atrocities are soon to follow.
The mercenaries rape, plunder, kidnap, torture, and exploit
on a massive scale, traffic children, kill and threaten
journalists, and are credibly accused of placing landmines in
cities and nuclear power plants, even abusing nerve agents in
Libya. When one sees the propaganda videos that have earned
Wagner the moniker ``Putin's bloody sledgehammer'' they are
actually no different from videos of the Islamic State
decapitating its captives. It is past the time to recognize the
Wagner Group for what it is, a foreign terrorist organization
operating at the--Putin's behest.
I recognize that the Wagner Group has not operated with
total impunity. Administrations past and present have levied
sanctions against Wagner and its owner for violating Ukraine's
sovereignty as an arm of Russia's defense and intelligence
agencies, as a violator of religious freedom and human rights.
The State Department recently designated Wagner a transnational
criminal organization. Yet, Wagner has not faced the full face
of the U.S. law as a consequence of being designated as a
foreign terrorist organization. In fact, just yesterday there
was an annual threat assessment by the U.S. intelligence
community. It states that, indeed, Putin will continue to use
Wagner to increase its influence, undercut U.S. leadership, and
gain access to valuable resources being stolen from different
countries that they operate in, and subjecting the people there
to servitude.
This hearing will assess the case for a terrorist
designation and explore how doing so could vastly strengthen
and expand the reach of U.S. sanctions. I believe the case is
clear. Wagner is no mere criminal enterprise in it for profit.
It is not the mafia. Wagner commits political violence to
advance Putin's interests, terrorism pure and simple. Those who
aid and abet Wagner, whoever they are and wherever they may be,
materially support terrorism. It is no accident that Wagner
receives weapons from the Democratic People's Republic of North
Korea, a State sponsor of terrorism. Designating Wagner as a
foreign terrorist organization would undermine its operations
and networks of support, and act as a powerful deterrent to
recruitment. It would also deter other authoritarian states,
such as the Chinese Communist Party, that might be inclined to
emulate Putin's use of Wagner.
To this end, I have joined with the ranking member Steve
Cohen in sponsoring the Holding Accountable Russian Mercenaries
Act, also known as the HARM Act, introduced along with the
companion legislation in the Senate by Commission Co-chair
Senator Ben Cardin of Maryland and ranking member Roger Wicker
of Mississippi. This bipartisan legislation, cosponsored by
many of our fellow commissioners along with prominent Members
of Congress, would direct the Secretary of State to designate
of the Wagner Group and its affiliates and successors as a
foreign terrorist organization. Our esteemed witnesses today
include former counterterrorism officials and attorneys
involved in the prosecution of terrorism, well-placed to make
this case for a Foreign Terrorist Organization or FTO
designation.
We have with us Justyna Gudzowska, director of illicit
finance policy at The Sentry, a nongovernmental investigative
and policy organization that seeks to disable multinational
predatory networks that benefit from violent conflict,
repression, and kleptocracy. We look forward to your testimony,
which will provide an overview of the Wagner's terrorist
activities, including in Ukraine and Africa. She will draw on
her expertise as a former attorney advisor for the Department
of the Treasury's Office of Foreign Assets Control and the U.N.
Security Council on ISIS and Al-Qaida.
We have with us Jason Blazakis, former director of the
Counterterrorism Finance and Designations Office in the Bureau
of Counterterrorism at the U.S. Department of State, who will
explain how terrorist designations are made, whether Wagner
deserves such a designation, and what it would accomplish. Mr.
Blazakis is currently with both the Middlebury Institute of
International Studies and the Soufan Center.
Finally, we have Jason Wright, partner of Curtis, Mallet-
Prevost, Cold & Mosle LLP, a former judge advocate of the U.S.
Army. He is the kind of attorney we hope we will practically
empower by designating the Wagner Group a terrorist
organization. I will also note that he has a very distinguished
service in the Law School of Washington and Lee University of
Lexington, Virginia, as a graduate of James Madison University
right up the valley. So, Mr. Wright, is quite familiar with
western Virginia. We look forward to hearing what additional
tools he and his legal colleagues will have at their disposal
to pursue Wagner once it is so designated.
I am so grateful that we have Victoria Spartz with us
today, and all the way from Indiana. Then Congressman Mike
Lawler. It is hard to imagine--a brand-new Member of Congress,
but he has really jumped in, from the State of New York. Hey, I
left out, with Victoria, she is the first Member of Congress
who was born in the Ukraine to serve in Congress. So--and then
Mike is pretty smart. He married a beautiful young--he married
over his head, right? A beautiful young lady from Moldova. So
we have got people who have family association. Then with my
oldest son marrying a Polish American, we can talk about how
much we appreciate Central and Eastern Europe. Well, many of
our families have married into that, and we have certainly all
benefited.
Before we turn to witnesses, I am really grateful to show
you something that even Victoria will be surprised about. This
I--this is a fragment of a wing of a Russian SU24-M, a
supersonic tactical bomber. It belongs to a fleet of aircraft
piloted by Wagner terrorists and was given to the Helsinki
Commission in January as a concrete example of the murderous
power of this organization. Can you imagine a supersonic
tactical bomber being controlled by terrorists? This particular
jet was downed over Bakhmut by Ukraine's brave defenders on
December the 2nd, 2022. As the courageous men and women of
Ukraine's armed forces continue their valiant struggle against
Wagner and, indeed, the full force of Putin's military, they
look to us to do our part legislatively and diplomatically to
take similarly bold actions against Wagner and the Putin State
to limit their ability to cause death and destruction, not just
in Ukraine but, sadly, around the world.
With that, we will begin immediately with our witnesses.
Justyna, look forward to hearing from you.
Ms. Gudzowska: Thank you very much, Chairman Wilson.
Distinguished Members of Congress, distinguished guests, thank
you so much for holding this hearing. It is truly an honor to
testify on such a critical issue.
My name is Justyna Gudzowska. I am the director of illicit
finance policy at The Sentry, a nonprofit organization that
follows the dirty money connected to war crimes and atrocities.
I have spent my career countering financial crime. Previously I
worked for the Treasury Department on sanctions against Iran
and for the U.N. Security Council on countering the financing
of terrorist groups such as ISIS and Al-Qaida. Most recently, I
was the lead sanctions attorney for the global bank Morgan
Stanley.
So today's hearing fits squarely within my work and The
Sentry's mission. But this subject is also personal for me,
like it is for you. I spent my childhood in Poland living
behind the Iron Curtain. I know what it is like to live under
Russia's thumb. It could not be more clear to me that the
Ukrainian people are fighting not only for their own freedom,
but for all of our freedom.
The chief focus of my testimony today is the history and
conduct of the Wagner Group, which is ostensibly a private
outfit but actually functions as an armed proxy of the Kremlin.
Against the backdrop of Russian expansionism and the illegal
invasion of Ukraine, we have witnessed a surge in the Wagner
Group's involvement on the battlefield and an elevation of the
group's profile more generally. You have likely heard about the
extreme brutality practiced by Wagner in Ukraine, including
human wave attacks, mass atrocities against civilians, and
extrajudicial executions, such as the recent killing of a
defector with a sledgehammer, a crime that was videotaped and
widely distributed on social media.
What is less well known is that for years prior to the
invasion of Ukraine, Russia has been steadily expanding its
influence with the help of the Wagner Group, leaving a trail of
death and devastation around the world. In addition to Ukraine,
Wagner has deployed to other trouble spots--Syria, Sudan,
Libya, the Central African Republic, Mozambique, Mali. It may
seem that since invading Ukraine, Russia has been increasingly
isolated as a global pariah, but in Africa the Wagner Group has
continued to project Russian influence. Wagner has reportedly
laid the groundwork in Burkina Faso and has its eyes on
Cameroon and Chad where, according to U.S. intelligence, it may
be trying to assassinate the country's pro-Western leader.
Simply put, the Wagner Group has become an integral
component of Russia's geopolitical strategy. Although the group
tends to adjust its playbook in response to specific
circumstances in country, its operations in Africa tend to
follow a pattern. Embed in resource-rich countries with
volatile political and security environments. Forge symbiotic
relationships with corrupt leaders. Provide training to
security forces under the guise of counterinsurgency or
counterterrorism. Pursue local business opportunities, and
engage in elaborate pro-Russia and anti-Western propaganda, and
carry out atrocities in furtherance of these aims. All while
maintaining links to the Kremlin.
Wagner has been a destabilizing force since 2014, and the
group's continued access to resources could undermine the
unprecedented international sanctions effort to isolate Russia.
The U.S. has responded to this pernicious threat by sanctioning
the Wagner Group, its operatives, and some of its front
companies under various sanctions regimes. Most recently, it
has been mentioned already, the Biden administration labeled
Wagner a transnational criminal organization, or TCO. What the
U.S. Government has not done is used the most powerful economic
tool in its arsenal. It is time for the U.S. to designate the
Wagner Group as a foreign terrorist organization, or FTO,
which, critically, would bring into play the extraterritorial
and criminal material support statute.
This move would serve as a powerful deterrent for anyone
who is thinking about working with Wagner. Designating Wagner
as a criminal organization is a step in the right direction,
but it does not carry the same powerful consequences as an FTO
designation. This is why the bipartisan HARM Act is such a
vital piece of legislation. I believe my colleagues will speak
to the process and practical consequences of an FTO
designation, but what I would like to do today is talk to you
about why Wagner fits the definition of a foreign terrorist
organization. I am going to do this by explaining the role of
the group in the Central African Republic.
The Sentry has been investigating the Wagner Group since
its arrival in the Central African Republic, or CAR, 5 years
ago. When Wagner first arrived in CAR, the country had
experienced decades of deadly and armed conflicts. Russia,
through the Wagner Group, promised security to President
Touadera and his inner circle. A Wagner operative was installed
as the president's national security advisor. In exchange for
this security, CAR would provide Wagner with access to valuable
natural resources, such as gold and diamonds. The fact that
Wagner also spends money in CAR on sophisticated Hollywood-
style propaganda glorifying Russia makes it clear that the
group is not there just for economic spoils, but also to
project Russian power abroad.
Wagner fighters and Wagner-trained Central African soldiers
have used terror as a weapon against the civilian population.
They have committed mass rape, torture, forced disappearance
and dislocation, and they have killed thousands of civilians.
Wagner has given orders to cleanse areas purportedly occupied
by rebel groups, which has resulted in atrocities committed
against civilians, including women and children. A joint
investigation by The Sentry and CNN of an incident in Bambari
revealed that Wagner mercenaries indiscriminately killed
civilians sheltering in and around a mosque. In addition to The
Sentry, other groups and multiple U.N. bodies have documented
such atrocities. The bottom line is, that Wagner targets
civilians.
In fact, according to The Sentry's local sources in CAR,
Wagner mercenaries give orders to kill everyone and leave no
trace. In CAR, Wagner's atrocities are often concentrated
around mining areas. In order to exploit the minerals, Wagner
engages in cleansing operations around mines. The modus
operandi is simple: The CAR government revokes licenses given
to third-country companies and transfers the concession to
Wagner-linked entities, while Wagner fighters come and secure
the area for themselves. They execute local residents to create
a climate of fear, and signal to others that the mines are off
limits. A U.N. official stated, with respect to Wagner
atrocities in CAR: People on the ground are absolutely
terrified.
During the course of our investigations, civilians
interviewed by The Sentry used the terms ``Terror'' and
``Fear'' repeatedly to describe Wagner's operations in the
Central African Republic. The Wagner Group is a transnational
threat, much like other terror organizations. Defeating this
threat will require a genuinely international effort focused on
the group's financing, propaganda, and movement of foreign
fighters, as we saw in the successful international effort to
combat ISIS. The U.S. needs to take the initiative here by
leveraging one of its most powerful financial tools and calling
the Wagner Group what it is, a terror group.
Before I finish, I want to leave you with one word of
caution. An FTO designation is a powerful measure that can have
negative humanitarian consequences by chilling the work of
legitimate nonprofit organizations that are afraid of running
afoul of the material support statute. This is especially the
case when the terrorist group has de facto control of
territory, as Wagner does in CAR. CAR is one of the poorest
countries in the world and is dependent on humanitarian aid. In
order to prevent further harm to the population, it is
important to ensure the humanitarian consequences of any
designation are properly mitigated.
In conclusion, I urge Congress and the administration to
implement the toughest economic tools the U.S. Government has
at its disposal to counter the Wagner threat and choke off the
group's resources, while minimizing negative impacts on
civilians in fragile countries where Wagner operates. Thank you
very much for your attention. I will be happy to answer any
questions you may have.
Chairman Wilson: Thank you very much. As a true indication
of bipartisanship, we have been joined by Senator Jeanne
Shaheen, all the way from New Hampshire. So grateful--.
Senator Shaheen: But really from the Senate. [Laughter.]
Chairman Wilson: Okay.
Senator Shaheen: So that is a little farther.
Chairman Wilson: Okay. But from the House of Lords, all
right? But, no, but we are so grateful, indeed, at this
bipartisan--hey, the support of the people of Ukraine is
bipartisan. Ms. Gudzowska, your Polish background. Again, I am
so grateful my daughter in law, Jennifer Miskewicz Wilson,
family's from Krakow. So I identify--and then I was in Poland
before the COVID. At that time something there was really
startling, and that is that Poland was the only country in
Europe that had 25 years of uninterrupted economic growth. You
think of how far Poland's come, 200 years of division, and then
the Hitler invasion of September the 1st, 1939, and the Stalin
invasion from the other side, on September the 16th, the same
month, 1939. To see where Poland is today, it is so exciting.
That can be a message to the people of Ukraine. So thank you.
We are grateful to have with us all the way from Rhode
Island, this is amazing, Senator Whitehouse. Just grateful for
your service and honored to be here with you. Again,
bipartisanship is live in front of you right here. I would--so
with this, Mr. Blazakis.
Mr. Blazakis: Good morning. Thank you, commissioners, for
inviting me to testify today on the activities of the Russian-
based organization that goes by the name Wagner. The work you
are doing to examine whether this notorious organization should
be sanctioned as a terrorist group is vitally important.
Indeed, each day that goes by without new pressure exerting
upon the group provide the Russian Federation an important
source of finance, propaganda, manpower, natural resources, and
access to geostrategically important countries and leaders
across the globe.
My name is Jason Blazakis, and I am a professor at the
Middlebury Institute of International Studies in Monterey,
California. I am also the director of Middleburg's Center on
Terrorism, Extremism, and Counterterrorism, CTEC for short. I
have served in these dual roles since July 2018, and at the
same time a senior research fellow at the Soufan Center, a
nonprofit and nonpartisan think tank based in New York City. I
want to emphasize that my testimony today contains my views,
and are not necessarily reflective of the views of Middlebury
or the Soufan Center. I also ask that my full written testimony
be added to the congressional record.
Now, prior to joining the Middlebury Institute, CTEC, and
the Soufan Center, I worked in the government for nearly 20
years. Of those years in government service, I worked across
both Republican and Democratic administrations. The last 10 and
a half years of my government service was spent at the Counter
Terrorism Bureau, the CT Bureau, at the U.S. Department of
State. At the CT Bureau, between early 2008 and July 2018, I
directed the activities of the Office of Counter Terrorism
Finance and Designations. Simply put, Myself and my team at the
CT Bureau were responsible for evaluating and compiling the
underlying evidence that led to determinations made by the
secretary of State regarding which groups should be labeled as
foreign terrorist organizations, FTOs for short, pursuant to
the Immigration and Nationality Act.
My office was also responsible for recommending which
groups or individuals should be designated as specially
designated global terrorists, pursuant to Executive Order
13224. Additionally, my office was responsible for developing
the evidence required for the listing of State sponsors of
terrorism to assist with various legal statutes. In my time at
the State Department, I oversaw the designations of hundreds of
individuals, organizations, and countries as terrorists. Based
on my experience of adding groups to the FTO list, there is no
question that the Wagner Group meets the legal criteria set
forth in the Immigration and Nationality Act.
Wagner is a foreign-based organization engaged in terrorist
activity that is a direct threat to U.S. national security
interests. That is the criteria for adding FTOs to the list. My
written testimony explores deeply the details of how the group
meets the legal criteria, but instead of spending time on that
I thought it beneficial to go over the practical benefits the
designation of Wagner as an FTO would provide, especially in
light of the fact that it is designated already pursuant to
four different executive orders.
The three primary consequences of the FTO designation
include an asset freeze, material support prosecutions, and
there are immigration consequences connected to the FTO
designation. The latter two consequences are important benefits
that make the designation worth pursuing. The chief benefit of
the FTO designation is the material support prosecution the
U.S. Government could pursue against members and financial
backers of the Wagner Group. In my years of government service,
prosecutors have expressed an overwhelming preference for
prosecuting individuals whose support can be traced back to an
FTO. Not only are FTO cases easier to prosecute, but they often
result often in much longer prison sentences than, say,
individuals who are prosecuted for supporting a transnational
criminal organization.
Furthermore, the reach of the FTO regime is much longer. It
has extraterritorial effects. To summarize, the FTO designation
would ratchet up law enforcement pressure against the Wagner
Group, while also ensuring the group cannot gain entry into the
United States. The FTO designation of the Wagner Group would
also have intangible benefits. First, it could have a deterrent
effect. The mere idea of someone working with a designated
terrorist group could deter leaders in countries from inviting
Wagner operatives to provide the so-called security that they
provide, that Justyna mentioned. Further, it may change the
calculations of countries that are already doing business with
Wagner. The FTO designation ultimately could result in de-
risking.
The FTO designation may also have an ability to affect
Wagner's recruitment to the organization. Adding the Wagner
Group to the FTO list may change the calculations of specific
recruits if they knew that they were joining a terrorist group.
Now, based on my direct experience, U.S. national security
agencies focus more resources on terrorist groups than they do
criminal enterprises. Labeling the Wagner Group as a terrorist
group would possibly increase the prioritization the United
States intelligence community puts on the group.
This could result in more assets, human or technical,
collecting information on Wagner, with additional analysts
devoted to spending time uncovering Prigozhin's front
companies, it also increases the likelihood the United States
can shed more light on Wagner's money trail. The terrorist
designation may also make it easier for U.S. intelligence
agencies and U.S. law enforcement agencies to share and receive
information from their overseas counterparts regarding the
activities of the Wagner Group. All these things will make--
become much easier, and easier to facilitate, if the State
Department labels the Wagner Group as a foreign terrorist
organization.
Finally, there are reports that the Wagner Group is trying
to recruit Americans over social media. The Wagner Group also
spews is propaganda over U.S.-owned social media platforms. In
my experience, once an organization is treated by the U.S.
Government as a foreign terrorist organization, social media
companies will remove content associated with that designated
group very quickly. Designating the Wagner Group as a terrorist
group will provide social media companies more leverage for
content removals of Wagner-associated content.
My written testimony gets into those details and many more.
I look forward to your questions.
Chairman Wilson: Thank you very much, Mr. Blazakis.
Actually, your State Department background and your expertise
is so much appreciated.
We are grateful for Jason Wright, formerly the director of
the International Law Clinic at Washington and Lee University.
Mr. Wright.
Mr. Wright: Chairman Wilson and commission members, thank
you for your time and for this opportunity to appear before
your distinguished Commission. My name is Jason Wright and I am
honored to highlight for you and the American people the legal
reasons why an FTO designation matters.
For context, I would like to briefly share my background in
this area. From 2005 to 2014, I served as an Army judge
advocate during the global war on terrorism, with tours in
Germany, Iraq, and Guantanamo Bay. I am now a litigation
partner at Curtis, Mallet-Prevost, Colt & Mosle, where I chair
the firm's national security law and sanctions and export
control practice groups. I have taught international criminal
law, terrorism, and the laws of war at Georgetown and
Washington and Lee Universities. I continue to serve as a JAG
in the Army Reserve and as an assistant professor of law at
West Point, where I teach constitutional law, military law,
national security law, and public international law.
Based on my Reserve military service, I am obliged to State
this disclaimer, that my views are my own and do not
necessarily represent those views of the Department of Defense
or its components. I am also pleased to share, Mr. Wilson, that
although I am a Virginian by birth and by education, I am also
a constituent of Mr. Lawler's in the proud 17th. Thank you,
sir.
Commissioners, based on my firsthand experience, similar to
my colleagues, I am proud to testify that the might of the U.S.
Government to combat terrorist organizations through military,
economic, and law enforcement means is unparalleled. But to be
fully effective, these means must be enabled. In my testimony
today, and also in my written testimony for the record, I will
explain why the designation of the Wagner Group as a foreign
terrorist organization can unlock a range of legal tools to
neutralize, disrupt, and defeat their global ambitions. Most
importantly, to deter others from providing material support to
their activities.
As you have heard, since 2016 Prigozhin and his private
military company have been sanctioned several times under
various executive orders pursuant to the International
Emergency Economic Powers Act, or IEEPA. Despite these
sanctions imposed by the U.S. Treasury Department, Prigozhin
has successfully evaded these sanctions. Just last month a
Financial Times investigation found that Prigozhin has
generated more than a quarter of a billion dollars in revenue
while under these IEEPA sanctions. He has done this while
continuing to expand his global ambitions in the Middle East,
in Africa, and in Europe.
So why does an FTO designation address this problem set?
There are several legal reasons. First, an FTO designation
triggers the material support statutes by creating a strong
prosecutorial tool. These laws would make it a crime for
anybody in the world, such as fighters, trainers, suppliers,
and financiers, to assist Prigozhin and the Wagner Group.
Second, an FTO designation helps the United States in its
bilateral relationships with other countries to enforce the
rule of law. It would enable U.S. prosecutors to provide
meaningful mutual legal assistance for the prosecution of
Wagner Group members in those countries.
Third, an FTO designation provides a focal point for
interagency coordination or integrated deterrence. Simply put,
it activates the resources of the U.S. national security might
to counter Wagner's global terrorism. Right now, the Treasury
Department is the lead, under IEEPA. But an FTO designation
activates the coordinated interagency efforts of the National
Security Council, the Department of Homeland Security, the
Department of Defense, the CIA, the NSA, the FBI, the DOJ, and
the State Department, among others.
Fourth, it provides greater leverage for international and
diplomatic coordination to isolate the Wagner Group to protect
U.S. nationals and to advance U.S. homeland and national
security interests here and abroad. Finally, an FTO designation
provides international legal clarity and U.S. legal
stewardship.
Members, in my opinion, the global war on terrorism is not
over. We have simply started a new chapter. A new threat has
emerged. The world is watching Prigozhin, a real-life Bond
villain, grow his global ambitions to disrupt international
peace and security through his terrorist organization, the
Wagner Group. An FTO designation provides essential tools to
isolate Prigozhin and his terrorist network. An FTO designation
also helps to protect Americans and to deter others from around
the world from providing him and his network any form of
assistance.
We won the first chapter in the global war on terrorism by
subduing the threat posed by Al-Qaida and ISIS by using all of
our instruments of power. We may be able to close this second
chapter quickly by acting decisively again, and by
demonstrating U.S. global leadership. An FTO designation is a
global and legal force multiplier that can help the U.S. and
our allies to neutralize, disrupt, and defeat Prigozhin, and
any other imitators who seek to counter U.S. national interest.
Thank you.
Chairman Wilson: Thank you very much, Mr. Wright. As a
former JAG myself, I appreciate your service continuing. That
is fantastic. At this time, we are going to begin, 5 minutes.
Gosh, we have been really fortunate. We have another member of
the U.S. Senate, is not that amazing, to come to this side of
the house. So Senator Richard Blumenthal.
Senator Blumenthal: It took me a while to find it.
Chairman Wilson: No, no, hey, hey. [Laughter.] Hey, hey--
Senator Blumenthal: [?]: We are lost little lambs over
here, Joe.
Chairman Wilson: No, no, no, hey, hey, hey. Anybody who is
been in the Rayburn Building knows that it is easy to get lost,
Okay? With that in mind, look how smart they are, they made it.
[Laughter.] So but with this in mind, we are going to have a 5-
minute rule. The staff is going to be really good to make sure
that we begin and control ourselves to 5 minutes. So please--
and we will be alternating between the House, Senate, and even
different political parties. So this is good.
I have got to restate again that sadly--and one of our
commissioners is Congresswoman Shelia Jackson Lee. She once
said good news has no feet bad news has wings. So the good news
of Republicans and Democrats, House and Senate members working
together to support the people of Ukraine, this needs to be
understood by the people of Ukraine and it needs to also be
understood by Mr. Putin. So as we proceed, I will begin.
Ms. Gudzowska, I agree with you that we are actually seeing
a worldwide competition, to me, between democracies with rule
of law. I am really grateful the University of South Carolina,
with the leadership of Lindsey Graham, we have--the law school
has worked with the University of Kyiv on a rule of law
program. So it's real live, and that is rule of law with
democracies as opposed to authoritarians with rule of gun. It
is so important. We see that today in Ukraine by Putin, but we
know the Chinese Communist Party is threatening the people of
Taiwan, and then so concerning additionally Iran is developing
ICBMs, intercontinental ballistic missiles, to vaporize the
people of Israel and to vaporize the people of the United
States.
So with that in mind, how serious all of this is, Mr.
Blazakis, some have indicated that the foreign terrorist
organization designation for the Wagner Group would lead
directly to a designation of Putin and Russia as a State
sponsor of terrorism. Is this correct? Why or why not?
Mr. Blazakis: It is incorrect. As somebody who was
responsible for shaping the State sponsor of terrorism list--
which, for the record, is very short, with just four countries
on it--Iran, Syria, Cuba, and North Korea. There are many other
countries that meet the legal criteria that are not on that
list. So there is flexibility in the context of creating the
State sponsor of terrorism list. Otherwise, you would have a
number of countries--Afghanistan, as one example, as currently
led by the Taliban, a designated--specially designated global
terrorist group pursuant to Executive Order 13224. The Haqqani
Network has members within ministerial positions in
Afghanistan. Yet, Afghanistan is not labeled a state sponsor of
terrorism.
Russia could already be designated, quite frankly, as a
state sponsor of terrorism today, right now, irrespective of
whether or not the Wagner Group is listed as a terrorist group.
The Russian Imperial Movement is an example of Russia providing
support and sanctuary to a U.S.-designated terrorist group. The
Russian imperial movement was designated by the Trump
administration in April 2020. It has training camps in St.
Petersburg. It trained an individual to carry out an attack in
Sweden. The Russian Federation has carried out assassinations
worldwide, assassinations very similar to the kind North Korea
carried out, that led them to be added to the terrorism list in
2017.
All this to say, very quickly, there is no automaticity if
you were to add Wagner to the terrorist list, the FTO rolls. It
does not mean the State Department would have to designate
Russia as a state sponsor of terrorism.
Chairman Wilson: Well, thank you. That is particularly
revealing about Haqqani. So thank you for showing the
differentiation. Hey, I have a great appreciation of trial
lawyers. I know that they can be very innovative and
enterprising. In fact, my oldest son, Alan Wilson, is the
attorney general of South Carolina. So I know that if we can
unleash trial lawyers in the world, gosh, how good that would
be.
So new tools for prosecutors, Mr. Wright. How would a
foreign terrorist organization designation empower you, i.e.,
trial lawyers, as a prosecutor or prosecutor, to go after the
Wagner assets and disrupt its aspirations?
Mr. Wright: Thank you, Chairman Wilson. First, if I can
speak to the criminal aspects that Mr. Blazakis referred to and
I also touched on as well. The FTO designation really opens up
the world for prospective criminal prosecution for U.S.
prosecutors. It has a very clear extraterritorial effect for
anyone who finances, supports the Wagner Group, whether they're
fighters, suppliers, you name it. So the material support
statutes really provide a great extraterritorial hook for U.S.
prosecutors to go after those individuals.
The material support statutes also have a lower standard of
mens rea, or statement of mind, for prosecutors to prove
whether someone knowingly commits a violation versus willfully.
That is the current standard under IEEPA. There is also an
extended statute of limitations for any injury or death for
these statutes. So, criminally, it really provides a lot more
advantages for U.S. prosecutors. In fact, there have been
almost twice as many prosecutions under the material support
statutes than there have been under those prosecutions pursuant
to IEEPA.
Now, if I can touch on the civil aspects, Mr. Wilson, an
FTO designation really helps Americans, those U.S. nationals
who are injured by the activities of Wagner and by any other
entities that aid or support Wagner. It would provide a private
right of action in the United States for those individuals to
go after Wagner as part of an effort really to continue to
deter not just Wagner, but any other entities that aid or abet
Wagner in their activities.
Chairman Wilson: Well, thank you very much. Indeed, the
thought of American and worldwide trial lawyers going after
them is really exciting, because these are enterprising
individuals. Thank you. I am really grateful, Ms. Gudzowska,
that--a question and then we will proceed. That is, how do we
know the Wagner Group operates to service Putin's interests
rather than just simply for profit?
Ms. Gudzowska: Well, there are a number of clear
indications that Wagner serves Putin's interests. First of all,
it was formed in 2014. The Wagner Group was the little green
men you heard about in the Ukraine, in eastern Ukraine, that
gave Putin plausible deniability at that time. Their operations
have expanded. For example, if you look at the Central African
Republic, they first came in after discussions between the
Central African government and Russia. They came in on a
Russian plane with Russian arms. So the link is clear. We know
Prigozhin is also a long-time ally of Putin.
Third, we know they do not operate just for profit like a
criminal group because they also spend money. One of the key
goals in those countries is to project Russian power, Russian
influence. They do that through elaborate propaganda, pro-
Russia, anti-Western. That costs money. So they're not just
there for the resources to make as much money as possible. They
also spend money. So there is really two goals when they go
into a country--access to resources and to project Russian
power and Russian influence.
Chairman Wilson: Thank you very much. It was really
interesting your estimation of their propaganda as Hollywood
style. That is shocking.
But thank goodness we have got good people, like Senator
Jeanne Shaheen is. We will proceed with here. We have been
joined by Congressman Steve--the ranking member, Congressman
Steve Cohen of the State of Tennessee. But we will proceed with
Senator Shaheen.
Senator Shaheen: Thank you very much, Mr. Chairman. I am
very pleased to be part of this bicameral, bipartisan show of
support for Ukraine and opposition to the Wagner Group, and
appreciate the work of the Helsinki Commission in bringing this
hearing forth today. I am convinced, on the foreign terrorist
designation. I am a co-sponsor of legislation in the Senate
that is bipartisan that would do that. I think the sooner we do
it, the better.
The question that I have is--a number of questions--more
about the Wagner Group. In the Armed Services Committee in the
Senate last week we heard testimony from one of the witnesses
that there is growing friction between Prigozhin and the Wagner
Group and Putin and the regular military. Can anybody here
speak to that, and how you see that being resolved? I am sure
most people here saw the video of Prigozhin asking for more
support. So I do not know who would like to respond to that.
Ms. Gudzowska: Well, I think it is--you know no one
understands Putin's mind except for Putin. So it is very
difficult to know what is really going on. Certainly, Prigozhin
has been poking the ministry of defense. He has been, you know,
very aggressively speaking out against Shoigu and Gerasimov,
the leaders, really, of the war. But it is unclear what Putin
thinks about it. I have seen articles kind of saying both ways,
that Putin likes this type of competition but also that
Prigozhin might have political aspirations. So I think it is
quite unclear. There is a lot of palace intrigue, but it is
hard to say definitively whether there is a rift between Putin
and Prigozhin. He certainly continues to act in Putin's
interests.
Senator Shaheen: Does everybody agree with that? There is
no--
Mr. Blazakis: I would just add I think there is an
interesting development with the possible creation of another
PMC, PMC Gazprom. I think Putin has seen the success of the
Wagner Group, but also Putin probably recognizes that Prigozhin
is increasingly becoming an internal threat. When you have a
private military company or a terrorist group like Wagner that
has more than 60,000 members, with an arsenal of weapons and
aircraft, as the chairman showed us--fighting aircraft--that
is--that is potentially a threat, an internal threat. I think
the creation of the PMC in Gazprom could be one way to think
about the future of how the U.S.--or, how the Russian
Federation projects power through PMCs in the future, should
Prigozhin and the Wagner Group fold.
Senator Shaheen: I think you testified, Mr. Blazakis, that
they have been recruiting in the U.S. Do we have any sense of
the success that they have had recruiting?
Mr. Blazakis: Thankfully, I have not seen any reflections
of success, of individuals who are American citizens who have
willfully joined the Wagner Group. So it is not been
successful. But I would agree with Justyna that they are
Hollywood-like productions. You can go see some of their movies
and their ratings on IMDb. It is quite problematic. I think
they are trying to continue to make inroads. If nothing else,
they try to polarize the American public as it relates to its
support to Ukraine during this time.
Senator Shaheen: Can you speak to the success that they
have had in other places recruiting? There have been reports
that they have been recruiting in the Balkans, in particular in
Serbia. That was denied by the Serbs, but do we have any
credible evidence of the success they are having?
Mr. Blazakis: Yes, no, the Department of State has gone out
there to Serbia to specifically bring this issue up. It is a
real issue. Serbia does have individuals who have joined the
Wagner Group. Interestingly enough, there have been multiple
reports that former Afghan special operators, trained by United
States, have also been recruited by the Wagner Group. The
Wagner Group has also made an effort to recruit from Syria and
Iraq individuals into the fold. So they have had some success
recruiting on the outside of the Russian Federation. They do
not just have to rely on recruitment from prisons.
Senator Shaheen: I am not sure who wants to answer this,
maybe you Ms. Gudzowska. But you talked about the theatrics of
the Wagner Group. They have been very successful at
disinformation. So what should we be doing to respond to that
disinformation much more successfully than we have today?
Ms. Gudzowska: I think we need to counter the
disinformation. I think that is critical. When I was at the
United Nations, we had the rise of ISIS. There was a coalition
formed to combat ISIS. That coalition focused on its financing,
the movement of fighters--which Jason was just talking about--
and the propaganda. So there needs to be a coalition, a global
effort to counter its propaganda because it is so good at
propaganda.
The perception that Wagner and Russia are a successful
private military group, successful against fighting
counterinsurgencies and counterterrorism, also needs to be
countered, because that is actually false. We saw them routed
in Mozambique. In Mali, the terrorism threat has actually grown
since Wagner entered the picture. So I think we need to make an
effort to counter that propaganda, that they are a successful
outfit, by highlighting their failures and highlighting the
atrocities, the steep price that these countries pay to get
Wagner in. Of course, the resource predation--the economic
predation they engage in.
Senator Shaheen: Thank you very much.
Chairman Wilson: Thank you so much, Senator Shaheen.
We now proceed--and we could tell you that Ukrainian
Americans have significance and have been successful in
America. We can tell you that every day, but we have a living
example of success with Congresswoman Victoria Spartz. Born in
Ukraine, representing the beautiful State of Indiana.
Representative Spartz: Thank you so much. Sorry for my
Yankee accent. [Laughs.] But I actually was going to say Jason,
I have a question, but we have two Jasons. So I have to say
last names. So I have quick questions for Mr. Blazakis, if I
say it right. Are you aware of any involvement of Wagner Group
in Mexico, Central America?
Mr. Blazakis: The indications I have seen in Wagner in the
south of the United States is primarily focused on activities
in Venezuela. I am not as familiar with activities they may be
engaged in Mexico City.
Representative Spartz: Okay. Then from--you know, kind of
ended a little bit, you know, sort of definitions. What do you
believe would be probably the strongest examples of activities
that pose a threat to our national security or the national
security of other nationals? What would be the really the
strongest examples?
Mr. Blazakis: You know, the Wagner Group is obviously
operating in Ukraine, projecting an important fighting force on
behalf of the Russian Federation. The United States has a
vested interest in preserving Ukraine's sovereignty. The
criteria for designating foreign terrorist organization, the
third criteria is, is the group's activity carrying out--being
carried out by the group a threat to U.S. national security
interests? So inherently the group's activities in Ukraine
represent a threat to U.S. national security interests,
specifically our foreign policy and broader geostrategic
interests.
Then I think Justyna mentioned a specific attack the group
was engaged in, in Bambari. Again, the activity in places like
Bambari in the Central African Republic, the activity of the
Wagner Group in Mali and elsewhere, that have been well
documented, where civilians are being killed is providing
propaganda coups also at the same time for groups like ISIS and
Al-Qaida, who are reconstituting in that part of the world. So
in fact, Wagner Group is not helping the situation. It is
inflaming the situation and providing more leverage to ISIS and
Al-Qaida, and more space to operate freely. So in that sense,
it is also a threat to U.S. national security interests.
Representative Spartz: Have you--actually, I have been, you
know, working on European security, but I have a lot of
different issues. Recently came up is the situation in Africa
and really involvement of China. Have you seen any increasing
activity or it is still the same, what really Wagner Group is
doing and the collaboration with China--Chinese Communist
Party--in Africa? Justyna?
Ms Gudzowska: I have not seen anything related to China
specifically. Certainly, in Africa, the threat from Wagner is
spreading. They are going into new countries. As the rest of
the world is isolating Russia, Wagner threat is spreading. They
are looking to join other countries all--you know, like Burkina
Faso--all very resource-rich countries. I can not speak to the
China--.
Representative Spartz: But is not it, Wagner Group, really
used to support a lot of corrupt governments in Africa that
China likes to work with? Because our people do not want to
work with them, right? There is a lot of control of resources
that has really come out now with a lot of different issues. It
seems like it is--you know, I hear from people from Africa that
there is increasing activity there in the recent times. So
maybe that is--maybe, Justyna, quickly about that. Do you
believe designating the Wagner Group at FTO would have some--
because we have so many loopholes in different sanctions. Would
it allow them to maybe close some loopholes or make it harder--
or, better enforcement of what Russia is doing, in the
enforcement of sanctions against Russia?
Ms. Gudzowska: Yes, definitely. I think the FTO tool is
just a stronger tool than sanctions because it brings to bear
another separate law. That is the material support statute. It
is a criminal statute, as has been discussed. It is
extraterritorial. So the prosecution can occur against foreign
persons. For just sanctions, there are really limits on
jurisdiction. You know, the conduct has to be in the U.S., or
it has to be by a U.S. person. So the jurisdictional limits are
more significant with an IEEPA designation, as strong as it is.
It is just not as strong as an FTO designation.
Representative Spartz: Right. Maybe something--you know,
any of you could comment, maybe Jason--do you--have you seen--
because it seems like--you know, have they seen any ideological
or--for recruitment or some motivation? Like, I could see how
they could do it in Serbia, you know, some propaganda to do
actually recruitment, you know, for Wagner Group. I can see it
is happening in Africa right now. Russia is doing strong
propaganda, I am sure, as it also allows some. You know, but
have you seen any recruitment using ideological propaganda?
Mr. Wright: Well, certainly. Thank you. That touches on
some of my statements about essentially imposters. There is
some reporting in Belarus that Wagner went and trained a
private military company in Belarus to also engage in offensive
operations. There is some news reporting about that. I believe
the name of the entity is Gardservis. Then to speak--at least
to address one of your earlier questions, there is also some
reporting about Wagner's attempts to engage in disinformation
campaigns in Mexico. This was allegedly pre-COVID, but that was
a plan that was shut down, allegedly. There was a Politico
report that came out in February addressing some of their
global ambitions in this regard. So I think the risk is real,
not just about recruitment but continued disinformation
campaigns across continents.
Representative Spartz: My time expired. Thank you. I yield
back.
Chairman Wilson: Thank you very much, Congresswoman Spartz.
We appreciate her Indiana accent. It was very clear.
So with that, we are really grateful to be joined by
Senator Sheldon Whitehouse from Rhode Island.
Senator Whitehouse: Thank you, Chairman. Thanks to the
Helsinki Commission for holding this, and to our witnesses for
being with us. I should report that we are pushing for a date
for a vote with Leader Schumer on the designation of the Wagner
Group as a foreign terrorist organization. I want to salute
Senator Blumenthal, who is sitting next to me, for his work and
Senator Graham. We just were in Kyiv not long ago. One of our
big takeaways is this really needed to be done. So I hope it
will be shortly.
Ms. Gudzowska, could you just give us a quick explanation
on how the financial institutions, lawyers, company formation
agents, and other enablers facilitate the Wagner Group's money
laundering and financial crimes, and how the FTO designation
would impair that?
Ms. Gudzowska: Thank you very much. Thank you for this
question. I am a big fan of the Enablers Act, so I am glad you
asked this.
Senator Whitehouse: We are still working on it.
Ms. Gudzowska: Yes. [Laughs.] So I think that is a very
critical component. That is because the Wagner Group works
through front companies. Wherever it goes, it sets up front
companies--in CAR, in Sudan. That is how it is able to exploit
those resources. To set up front companies, you have to have
people willing to do that. You need lawyers. You need company
formation agents. So those people need to be targeted as well.
Their obligations need to be higher. We also need to raise
awareness--.
Senator Whitehouse: An FTO designation would facilitate
that?
Ms. Gudzowska: Yes, because it just raises the bar. You can
be prosecuted for doing business with the Wagner Group, whether
you are sitting in the U.S. or a different country, if you are
providing material support.
Senator Whitehouse: Thank you. Thank you. Mr. Blazakis,
what is your view on how other countries would view Wagner's
actions? Would we be isolating ourselves by designating them a
terrorist organization, or joining a consensus?
Mr. Blazakis: I think for the designation to be as
effective as it could be, it is important for the United States
to align itself and to work with other countries to also
designate under their own legal authorities the Wagner Group as
a terrorist group. I testified in October--.
Senator Whitehouse: Which is already beginning, correct?
Mr. Blazakis: Which is, yes. I testified at the House of
Commons Foreign Affairs Committee in the U.K. There is an
initiative within the U.K. Parliament to proscribe the Wagner
Group as a terrorist group. There was a report recently, about
a month ago, that the Home Office, who has the legal authority
to designate terrorist groups in the U.K., is at the threshold
of possibly designating the group. I don't think the United
States would isolate itself by sanctioning the Wagner Group as
a terrorist group, but rather it could serve as the inspiration
for other countries to do the same.
Senator Whitehouse: Mr. Wright, this will be my last
question, the--in addition to being little green men, and in
addition to being a mercenary army for Vladimir Putin, the
Wagner Group also provides muscle for kleptocrats, at a price,
usually out of the national revenues of the kleptocrats they
are protecting. What is your assessment of how important it is
to follow the money, to get at all these lines of business? How
good do you think we are at it right now? How much room for
improvement is there?
Mr. Wright: Well, to address the first part of your
question, it is critically important to follow the money. You
take away the resources, and it certainly can restrict the
scope of their activities. That is one of the goals really of
an FTO designation, is its global deterrent effect. It can have
a deterrent effect on those individuals that are willing to
support their efforts.
Senator Whitehouse: Do you have an assessment of how well
we are doing or how much room for improvement there is?
Mr. Wright: Well, I can not speak to that, as far as the
Department of Justice internally or otherwise, but I can just
speak to the statistics. Generally speaking, FTO prosecutions
have been much more successful than any prosecutions under
IEEPA. There is almost a two fold number of successful
prosecutions under those statutes. So it has been an effective
tool, at least in the fight against Al-Qaida and ISIS as well,
by example.
Senator Whitehouse: Great. Well, with colleagues joining, I
do not want to take any more time. But I would invite the other
witnesses if they have further comments on that to take the
question as a question for the record. Would love to have any
further response you can to offer in writing. Thank you. Thanks
again, Chairman. This is a very good stuff.
Chairman Wilson: Hey, thank you so much, Senator.
Appreciate your insight. It is exciting to hear the legislation
proceeding. That is so positive. Thank you.
Indeed, next we will proceed to Congressman Mike Lawler of
New York. I want to remind you again, his wife is from Moldova,
and how insightful this is. By accident, dictator Lukashenko of
Belarus was showing a map, and by accident it showed an error
of the puppet troops proceeding into Moldova. So if anybody
wonders what is happening, hey, it is so important for the
victory of Ukraine, because we know that the next country that
they would proceed to would be Moldova, and it, of course,
would be the Republic of Georgia. Then Putin has expressed a
keen interest in Narva, which happens to be in Estonia. It is
shocking that there has been an indication that he would like
to have a land route to Kaliningrad, which means going through
Lithuania. Then who would imagine, last week there was an
announcement of Putin being very interested in redrawing the
national boundaries of Poland. Gee whiz.
With that, Congressman Mike Lawler.
Representative Lawler: Thank you, Chairman. Thank you all
for your testimony. Welcome Mr. Wright, my constituent. To the
Chairman's point, my wife is from Moldova. Her family lives
about 30 miles from the Ukraine border, near Transnistria. You
know, obviously, the Wagner Group has been heavily involved in
Ukraine. Have we seen activity spilling out into other former
Soviet satellite countries to date?
Mr. Blazakis: I have not seen any reflections of that.
Although, obviously Wagner has operated, as my co-panelist has
mentioned, in Belarus, reportedly. So there are indications of
that.
Representative Lawler: Okay. We know that North Korea has
provided military assistance to the Wagner Group. How, in your
estimation, has the United States responded to this
intelligence? How do you think our government should respond--
be responding to other nations, like China, who may provide
military assistance to the Wagner Group, or directly to Russia,
in the future?
Mr. Blazakis: So North Korea is one of the most sanctioned
countries in the world, but nonetheless the fact that it is
providing military armaments to Wagner I think requires a stern
response by the Biden administration to explore additional
sanctions against specific individuals or organizations who may
have provided those arms to the Wagner--the group. An
interesting tool that is not--.
Representative Lawler: To date, have we seen any of those
potential sanctions take place?
Mr. Blazakis: No, I have not seen anything specifically.
That is a relatively new development that occurred at the end
of 2022. Designations do take some time to unroll. So they may
be looking at potential targets still for possibly designation.
So that is one thing about the designations process, generally
it could take many months to unfold before a designation
culminates.
Representative Lawler: Understood. With respect to
designating the Wagner Group as an FTO, how specifically--and I
know you have all been touching on this in your testimony--but
U.S. efforts to hold the company accountable for its continued
threat to security. How would this designation really allow us
to do that as an effective tool?
Mr. Wright: Well, it empowers the full counterterrorism
might of the U.S. Government, ultimately. Part of our national
security strategy has been--and the national security
strategies over the last several years is this concept of
integrated deterrence. Really it activates our counterterrorism
powers across the alphabet soup of military, defense, and
intelligence agencies. Specifically, it empowers the Department
of Justice, really, with a--with a very strong criminal law
enforcement tool, that tool of deterrence which we have been
speaking about.
Truly, any member, or any fighter, or any financier, any
supplier who wants to provide beans, bullets, money to the
Wagner group and their terrorist network anywhere in the world
now falls under the jurisdiction for prosecution to the United
States, which is an extraordinarily powerful tool that exists
globally. That is--that is really, I think, the strongest
benefit, if we are talking about that law enforcement tool. You
know, certainly there is diplomatic pressure as well, and
diplomatic aspects of such a designation, which have been
touched on a little bit here today. But in the end, really it
is this criminal power that we have with a concentrated,
coordinated focal point for U.S. Government efforts, is really
the animating difference here, with an FTO designation versus
the existing sanctions regime.
Then, Congressman, just to address one of our earlier
questions, you know, under the IEEPA sanctions there is only
been piecemeal designations in relation to the Wagner Group.
The Wagner Group, as we all know, have been designated many
times, and there is a history here. But in terms of other
enablers, there is been some ad hoc designations as SDNs. Most
recently, on January 23rd, there was a laundry list of
companies in various countries--China, Russia, Luxembourg,
Central African Republic, and UAE. Just those SDN designations,
what it primarily does is just prevent U.S. persons from
engaging in transactions with them, or conduct that occurs on
U.S. soil, or transit through the U.S., or has a deterrent
effect on these other non-U.S. persons.
Representative Lawler: So you believe this designation
would allow us to hold other countries and other bad actors
accountable for engaging and cooperating with them?
Mr. Wright: One hundred percent.
Representative Lawler: Thank you.
Chairman Wilson: Thank you very much, Congressman Lawler.
It is refreshing that Congressman Lawler has acknowledged that
he married over his head. [Laughter.] Which has certainly
created the circumstance of his being elected to Congress. We
are so fortunate to have, again, a member of the Senate come
all the way over to the House. This is startling. Senator
Richard Blumenthal of Connecticut.
Senator Blumenthal: From Connecticut is right. Thank you,
Mr. Chairman. Many of us both the House and the Senate married
above ourselves. So that is true in my case as well. I
appreciate your very warm welcome to the House. It would have
been worth the price of admission just to hear you suggest that
we ought to unleash the trial lawyers of the world. [Laughter.]
As a recovering trial lawyer myself, and former attorney
general of Connecticut and U.S. attorney, which leads me really
to my question.
As I think all of us know, these designations and laws are
only as good as the enforcement of them. So when we apply
sanctions--whether it is as a foreign terrorist organization or
some other designation--my question always is: Who is enforcing
these provisions? How effective has it been? Let me ask all the
members of the panel, in terms of the present sanctions regime,
are there companies that we ought to be looking at that may be
violating these sanctions, because the Congress has
investigatory powers? Is our Department of Treasury or State
doing as much as they can or should?
I understand that designating the Wagner Group as a foreign
terrorist organization would enable stronger sanctions on
anybody dealing with it. I am the lead co-sponsor in the
Senate, along with Senator Graham. It is bipartisan. As Senator
Whitehouse said, we expect we'll get a vote if not next week,
hopefully very, very soon. Then I hope we will have a House
vote as well. I applaud Representative Cohen, I just read his
bill which I think is very, very effective, and that we will
have bipartisan support here as well, which obviously this
session is helping to build.
But I think in getting a vote, it helps to say: This is
going to have real impact, because it will be enforced. So I
would like to hear from you about the record so far, the
companies we should be looking at. You do not have to name them
here. You can do it in a private meeting. But I would be very
thankful for your suggestions. I will just begin with you.
Ms. Gudzowska: Happy to start. It is a great question. I
think the difficulty with sanctions is that it is often a game
of whack-a-mole. You sanction some entities, and unfortunately
the sanctioning of Wagner Group front companies has been a bit
sporadic, and it has not been well-coordinated with our allies,
especially the EU and U.K. So I think we should continue the
sanctions efforts, sanction more front companies as soon as we
know about them, and at The Sentry we know of quite a few that
have not been sanctioned, frankly. But we need to do it with
our allies.
But you can not sanction everybody. So that is why the FTO
designation is so important, because it has this deterrent
effect. It ups the ante. It makes other actors, other
companies, less likely to deal with Wagner, because they know
that America's prosecutorial arm will come after them, and can
come after them. So I think that is why it would have such an
impact. It just really raises the bar. Dealing with a criminal
organization does not scare people in the same way that dealing
with an FTO would.
Senator Blumenthal: Well said. Thank you.
Mr. Blazakis: In terms of operationalizing sanctions, that
is also the most important thing that can be done, with the
current array of sanctions deployed against the Wagner Group,
but also any future designations. Then speaking on
designations, I agree with Justyna that if you look at the
number of specially designated nationals, whether entities,
businesses, or individuals heretofore designated by the U.S.
Government, you are talking about 20 to 30 entities and
individuals. You think about the scope and the size of Wagner,
you're talking tens of thousands of individuals.
So there is certainly more designation targets that can be
pursued. Which targets would be the best to pursue, I think, is
dependent on intelligence, but in law enforcement-related
expansion of authorities, which all the FTO designation would
very likely provide. Because that would increase, in my mind,
the prioritization the U.S. Government puts on the group if it
is labeled a terrorist group. That could generate more
intelligence and law enforcement sources, cultivation of
sources, that could lead to more information, that can allow us
to actually have some tangible assets frozen associated with
this group.
To date, I am not aware of any assets associated with the
Wagner Group that have been frozen because of the U.S.
Government designations. Nor am I aware of any prosecutions of
Wagner individuals heretofore.
Senator Blumenthal: Mr. Wright.
Mr. Wright: Thank you, Senator. I do not have much further
to add, other than what we are dealing with here is certainly a
terrorist network that is engaged in a number of shell
companies all over the world. so it certainly is a monumental
enterprise. What really an FTO designation does is it helps
unleash all of those tools. The focus can be much like ISIS and
Al-Qaida in stopping the flow of funds, stopping the flow of
fighters, and stopping the flow of arms and munitions.
Senator Blumenthal: I want to thank all of you and regard
this testimony the beginning of a conversation. We would like
to reach out to each of you, Ms. Gudzowska, Mr. Blazakis, Mr.
Wright, because enforcement is so important. By the way, we
have passed unanimously in the U.S. Senate a resolution
sponsored by Senator Graham and myself to designate Russia as a
State sponsor of terrorism. One of the high points of my
service in the U.S. Senate was to present a copy of that
resolution to President Zelensky in Kyiv, in his office.
We may doubt from time to time the moral force of what we
do in the Congress. Very often we pass stuff and it seems to
have no effect. But I can tell you, in terms of the morale for
the people of Ukraine, that resolution, the visit of the
president, all of these actions that we take have real impact.
So I think designating the Wagner Group as a foreign terrorist
organization would be in that--would be in that same spirit,
and would have much the same effect. But when it comes right
down to it, we do need enforcement. We need to make it count.
So thank you all.
Thank you, Mr. Chairman.
Chairman Wilson: Thank you, Senator. Again, thank you for
your courage to go to Kyiv to present that. Then it is--I know
Mr. Wright will appreciate this--that I enjoy very much your
working together, bipartisan, with Senator Lindsey Graham of
South Carolina. He and I were fellow JAG officers. So that is
how we got to know each other. So there is such a positive
association. Thank you. Then, hey, again, showing the--.
Senator Blumenthal: It is only slightly harder to get to
Kyiv than to get here from the Senate. [Laughter.]
Chairman Wilson: Oh, no, no. Well, no, hey, hey.
Senator Blumenthal: We do not have to take an overnight
train.
Chairman Wilson: Oh, hey--oh, hey, Senator, coming from the
Longworth Building was a challenge.
But with that in mind, someone who meets challenges is my
Co-chair--and thank goodness for--of another political party--
but Congressman Steve Cohen of Memphis, Tennessee.
Representative Cohen: Thank you, Mr. Chair. Thank our
witnesses for being with us today. Mr. Chairman Wilson is the
Co-sponsor of our legislation. We worked together in support of
efforts to try to designate agents that are clearly terrorist
groups or genociders. We had a bill last year to declare Russia
a perpetrator of genocide, but for some reason the State
Department did not work with us on that, and apparently my
Chairman of--Democratic Chairman did not work with us either.
It was rather difficult because, just like Mr. Blumenthal
recognized--Senator Blumenthal--how much that is appreciated in
Ukraine. They would have appreciated the designation. Zelensky
particularly asked us when he came to the Congress to designate
them as a genocider. Sometimes the State Department needs a
kick in the rear. A strong kick in the rear. That is what this
bill might do, what it is trying to do.
Mr. Wright, you might have discussed this--I was in the
Transportation Committee--do you have any ideas, or anybody
else have any ideas, why the State Department is being so
reticent? I mean, I know about the theory of Africa countries,
and blah, blah, blah, and may be a precursor to naming Russia a
terrorist group. You know, are they afraid of shadows, or what
is their reasons for being timid?
Mr. Wright: Well, on the question of a genocide, generally
speaking under the Genocide Convention there is an obligation,
once an event or conflict or series of events is categorized as
a genocide, it requires states to undertake affirmative
obligations to stop and prevent the genocide. So I know
historically the U.S. Government has been traditionally
reluctant to call a spade a spade when, in fact, it is a spade,
based on that international obligation.
Representative Cohen: But that obligation's when the
government--the administration does it. If the Congress does
it, it does not put those obligations on them.
Mr. Wright: That is right. That is right. What I am
speaking to is just really the obligation under the genocide
convention more particularly. That is my understanding as to
the general reluctance, not just within the United States, but
within the international community. I think we all can observe
what is happening and when it is happening. But when the issues
of State responsibilities come into play, I think that is
probably the resistance from the State Department. I have not
studied this issue in particular. I can only speak to my
understanding generally of those obligations. But that would be
my assessment, sir. But perhaps my colleagues have some
additional thoughts.
Representative Cohen: Please. I want to ask you another
question, Mr. Blazakis. This is to educate me. I mean, I know a
little bit about Ian Fleming, but I do not know a whole lot
about international bad guys, like he did. He probably
envisioned Prigozhin. How many other organizations like this
have there been, or are there, that are just private groups
that are just out there to do bad things in mass quantities?
Mr. Blazakis: So I would love to also respond to your last
question, since I used to be one of those people you probably
kicked in the butt when I worked at the State Department as the
head of the office that made the FTO designations. [Laughter.]
I will say, congressional pressure is actually really helpful
to get things moving within the executive branch. I was there
where there was a lot of controversy about the possible
designation of Boko Haram as a foreign terrorist organization,
and the Haqqani Network. Congressional bills were really
important in terms of gathering momentum within the executive
branch. So I think the HARM Act is particularly important.
The reasons why the State Department may not have
designated the group--it could be a range of reasons. One
reason could be very simply the process to designate foreign
terrorist organizations can take up to a year gathering the
evidence, compiling it, and coordinating it within the
interagency to ensure that other national security agencies
don't have equities that could be impaired with respect to the
designation.
The other point I would make is the State Department has
not added a foreign terrorist organization to the list since
2021. I think there could be a few reasons for that. One reason
is I know they don't have the coordinator right now for
counterterrorism. You know, fighting within the State
Department on challenging issues like this could be where
maybe, say, the European Affairs Bureau could be opposed to the
designation, requires a political appointee that has some
gumption, that can take on those interagency fights. So I think
that might be another point that's important in the context of
this conversation.
The other point I would make is there is a perception often
in the State Department that designations or sanctions more
generally can tie the hands of diplomats, and force them into
boxes they do not want to be in. I think this is a perception
that probably exists from the State Department thinking that if
you were to add Wagner to the list, somehow it is going to
result in some kind of State sponsor of terrorism designation
for Russia. Which, as I mentioned earlier, would not be the
case. So in the context of why there is a delay, I think this
is perhaps why we are seeing some delay from the State
Department.
Representative Cohen: How about these other groups? Are
there other groups that are--you know, in the world, have there
been other groups like the Wagner Group that have been so
outrageous, and so large, and so effective?
Mr. Blazakis: Yes. So Wagner is, in one sense, unique
because it is a significantly large organizations, with tens of
thousands of individuals, that have the full backing of a
country that has significant power, Russia in this context. But
we have seen the State Department designate paramilitary or
PMC-like groups in the past. A really good example of that
would be the AUC in Colombia. The AUC paramilitary force,
created ostensibly by the Colombian government, to go after
leftists within Colombia, to include the FARC. Went off the
rails, carried out heinous acts against civilians at the same
time. They were designated as a foreign terrorist organization.
So I think there is an analog where designating the PMC
will not set a precedent for the State Department, because you
have had organizations like it sanctioned before. Then, of
course, Hezbollah is a foreign terrorist organization. It has
very similar capabilities as the Wagner Group in terms of the
scope of personnel and the backing it gets from States,
particularly a State like Iran.
Representative Cohen: If I can just have one more question.
Thank you. Assuming the sanctions are supposed to be effective,
and we put more sanctions on them, and all these kind of
things. If the Wagner Group is effective in fighting this war,
is Putin going to do anything to stop the Wagner Group? Can he
just take them and make them instead--appoint Prigozhin a
deputy, and his group becomes part of the Russian military, and
blah, blah, blah?
Mr. Blazakis: Yes. I think the most likely scenario is
Prigozhin gets a little too big for his britches and stops
himself, and results to his ultimate demise, probably at the
hands of Putin or others within Putin's inner circle. I do
think Prigozhin has made an effort to not only project power in
places like Ukraine and places like the Central African
Republic, but also is trying to make inroads internally within
Russia.
You know, Prigozhin created a tech center in St. Petersburg
because of the brain drain from Moscow in terms of skills that
the country's losing, because people just do not want to get up
and fight for Putin. In that sense, I think Prigozhin is trying
to gain a bigger foothold within Russia, to have a domestic
presence. I think that tech sector he is created is actually
one way to do that. So I do see him trying to become perhaps
more involved in domestic politics as well.
Representative Cohen: I yield back the remainder of my
time.
Chairman Wilson: Hear, hear. Hey, I wanted to--absolutely.
But I want to thank Congressman Cohen. Now you will see why my
wife Roxanne thinks he is a superstar. So I am really grateful
for this.
As we conclude, I want to thank the Helsinki Commission
staff and Demitra Pappas has just been instrumental in
providing extraordinary documentation as we have prepared
today. But again, it is such an honor to have such
distinguished individuals here as witnesses, and the
credibility you have. But, again, to show the American people
the bipartisan--so strongly in favor of victory for the people
of Ukraine.
With that, I would also, as we adjourn, I would like for
the three of us to join you back there for a picture. So please
stay seated because it is just an honor to have you here. With
this, and the Representatives from the Ukrainian Embassy, gosh,
the Ukrainian Americans who are here, as we face just
incredible situations I am just so hopeful for the people of
Ukraine, people of United States, which is vital to our
national security. With that, we are adjourned. [Sounds gavel.]
[Whereupon, at 11:35 a.m., the hearing ended.]
?
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Additional Submissions for the Record
=======================================================================
Additional Submission for the Record
OPENING STATEMENT OF HON. BEN CARDIN, CO-CHAIRMAN, U.S. HOUSE
FROM MARYLAND
Senator Cardin: Thank you, Chairman Wilson, for convening
this hearing of the Helsinki Commission to examine how Congress
and the United States government can bring its most powerful
tools to bare against one of the most dangerous entities
currently in the international system, the Russian mercenary
network that goes by the name Wagner Group.
Mr. Chairman, Putin unprovoked and illegal war against
Ukraine has been made deadly because of the Wagner Group. As
the Commission will hear from today's witnesses, these
mercenaries have been credibly linked to countless atrocities
in Ukraine and across the African continent, as well as other
places including Syria.
I credited the administration with sanctioning Wagner and
its leadership on several occasions, including on January 26,
when the U.S. Department of the Treasuary Sanctioned Wagner as
a Transnational Criminal Organization.
However, I and many of my colleagues believe we can and
must go further and designate the Wagner Group a Foreign
Terrorist Organization.
First, let's be clear: Wagner is not simply some criminal
organization that is in it for the money; yes, some people are
getting rich, and certainly, criminal acts are taking place.
But this is not a drug cartel or mafia group. Wagner, as the
Administration has on numerous occasions asserted, operates in
the service of Kremlin interests. The atrocities and terrorism
are intrinsic to Wagner's operations in order to produce a
political effect.
Secondly, designating Wagner as a Foreign Terrorist
Organization would unlock additional tools and authorities that
I believe would have a significant negative effect on Wagner's
ability to rape and pillage in the service of Kremlin
interests. Not only would it make material support to the group
subject to U.S. criminal jurisdiction; it would also limit
Wagner's recruitment, and deter others from working with or
employing Wagner now and in the future. It would also send a
strong message that we will not tolerate Wagner-type groups as
an accepted actor in the international system; in short--no one
should think that emulating Wagner is a good idea.
Mr. Chairman, it is for these reasons that I have been
proud to co-sponsor, with a strong bipartisan group of Senate
colleagues\1\ led by Senator Wicker, the Holding Accountable
Russian Mercenaries Act--also known as the HARM Act. This
legislation would direct the Secretary of State to designate
Wagner Group as a Foreign Terrorist Organization. I am also
grateful to our colleagues in the House of Representatives, led
by Congressman Cohen and a number of our fellow Helsinki
Commissioners, who have introduce the HARM Act in their
chamber. I thank the witnesses present at today's hearing for
their important views on the merits of this legislation and the
effects it is likely to have.
---------------------------------------------------------------------------
\1\ [U.S. Senators Lindsey Graham, R-S.C., Jeanne Shaheen, D-N.H.,
Thom Tillis, R-N.C., Richard Blumenthal, D-Conn., Marco Rubio, R-Fla.,
and Sheldon Whitehouse, D-R.I.]
---------------------------------------------------------------------------
Mr. Chairman, there is a strong and growing bipartisan and
international consensus that Wagner Group's uniquely destrutive
and terroristc actions merit the use of our strongest tools in
response. I urge my colleagues, and the Administration, to join
us on the right side of history in designating Wagner Group an
Foreign Terrorist Organizations as soon as possible.
Senator Wicker: Chairman Wilson, thank you for bringing the
Commission together to discuss what we should do about one of
Putin's most deadly and vicious tools--the Wagner Group.
These Kremlin-directed mercenaries have in recent months
made international headlines for their exceptional barbarism
and brutality as lead elements of Putin's forces in Ukraine,
where they have committed countless atrocities of the most vile
sort.
However, the people of countries such as Syria, the Central
African Republic, or Mali know all too well that the Wagner
Group is no new and emerging actor. In fact, for years this
shadow army of thugs has expanded its reach throughout the
Middle East and Africa, raping and pillaging at every stop. It
has managed to corrupt the political systems in which it
operates, securing rights to extract mineral resources that
fund Wagner Group operations elsewhere, including in Ukraine.
Mr. Chairman, the United States should call this shadow
army what it is: a foreign terrorist organization. We must hold
the Wagner Group and any who support these terrorists
accountable for the atrocities they have committed across the
globe.
Its no secret to anyone in this room that since Putin
launched his lawless and brutal invasion on Ukraine just more
than a year ago, Congress has been out in front of the
Administration every step of the way in ensuring the strongest
possible support for the brave Ukrainian people as they fight
for their freedom and independence--a fight that has direct
implications for the national security of the United States.
Eventually the Administration has, for the most part, come
around to positions that were already largely in the
Congressional mainstream.
That is why it is so important once again for Congress to
lead the way, and why I am so proud to have introduced, with a
strong bipartisan group of Senate colleague1, the Holding
Accountable Russian Mercenaries Act--also known as the HARM
Act.
This legislation is both morally clear--Wagner Group
clearly meeets whatever standards you might want to measure it
against as a terrorist group--and has a demonstrable impact, as
it will hurt Wagner's operations immediately and definitively.
[all]