Milorad Dodik's daughter Gorica and son Igor join him on US blacklist

(Patria) - The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury today added two individuals and four companies to the list, forming the core of the support network of specially designated national and President of the RS, Milorad Dodik.

Members of this network, including Dodik's adult children, enable the continuation of Dodik's corrupt activities in the BiH entity of RS, allowing him to siphon public funds from the RS for his own enrichment and that of his family at the expense of BiH citizens and functional authorities in the country.

Dodik previously served as a member of the tripartite Presidency of BiH and is widely known for openly calling for and acting towards the unilateral transfer of state competencies from the state level of BiH to the RS, one of the two entities that make up BiH.

Dodik has used and continues to use his official position in BiH to accumulate personal wealth through bribery, graft, and other forms of corruption. His ethno-nationalist divisive rhetoric reflects his efforts to achieve these political goals and divert attention from his own corrupt activities.

Furthermore, Dodik publicly demeans other ethnic and religious groups in BiH, deepening divisions and political deadlock.

- With the financial and political support of individuals and companies added to the list today, Dodik is involved in corrupt activities that enable his personal financial and political stability at the expense of BiH citizens living in the RS.

We will continue to hold accountable those whose activities contribute to the degradation and undermining of institutions in BiH and the Western Balkans, as well as the Dayton Peace Agreement - said Brian E. Nelson, Under Secretary for Terrorism and Financial Intelligence at the Department of the Treasury.

The United States sanctioned Dodik on January 5, 2022, pursuant to Executive Order 14033 for being responsible for or complicit in, or for directly or indirectly engaging in, actions that constitute a violation, obstruction, or threat to the implementation of the Dayton Peace Agreement, as well as for corrupt activities.

The United States had also previously, on July 17, 2017, added Dodik to the list pursuant to Executive Order 13304 for obstructing the Dayton Peace Agreement.

Most recently, in June 2023, in the National Assembly of the RS, Dodik proposed the adoption of a law titled "Law on the Non-Application of Decisions of the Constitutional Court of BiH in the National Assembly of the RS," which aims to declare decisions of the Constitutional Court of BiH inapplicable in the RS, constituting an obstruction and threat to the implementation of the Dayton Peace Agreement.

The High Representative in BiH used his powers in July 2023 to annul that law, publicly condemning it as a law that undermines the regional constitutional order, the rule of law, and the distribution of powers.

Dodik signed a decree bringing the law into force on July 7, 2023, despite the High Representative's annulment. As a result, the highest judicial body in BiH filed an indictment against Dodik for ignoring these decisions.

Today's sanctions build on previous US sanctions and visa restrictions aimed at highlighting the accountability of individuals who contribute to corruption and undermine democratic processes or institutions.

These activities are part of broader US government efforts to promote peace, stability, and functional, democratic governance in the Western Balkans region.

Igor Dodik and Gorica Dodik are key parts of Dodik's support network and enable his corruption. They have taken public funds from the RS and its citizens for their own enrichment. They have also supported destabilizing policies, actions, and rhetoric that challenge and undermine the sovereignty,…

— US Embassy Sarajevo (@USEmbassySJJ) October 20, 2023

Hidden Revenue Streams

Since 2021, Dodik has increased the involvement of his son, Igor Dodik, and daughter, Gorica Dodik, in political and business activities in the RS, leading to concerns that the RS is increasingly becoming Dodik's family business rather than a political entity of BiH.

The extent of corruption within Dodik's family has also raised concerns among states interested in foreign investment in the RS, leading some to refrain from such investment, believing that any financial assistance would likely end up in the hands of Dodik and his family rather than in RS institutions.

In recent elections in the RS, the Alliance of Independent Social Democrats, including Dodik and Igor, conspired to bribe political officials, election board members, and election observers in an attempt to win the elections through corruption.

Igor was involved in bribing opposition politicians, who were offered political appointments in exchange for key information and observer positions at polling stations.

Dodik's daughter Gorica is involved in managing her father's political and business activities, including ownership of several entities that receive significant assistance from the RS government at Dodik's behest.

OFAC sanctions Igor pursuant to Executive Order 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 Executive Order 14033.

OFAC sanctions Gorica pursuant to Executive Order 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 Executive Order 14033.

The RS-based companies Global Liberty d.o.o. Laktaši (Global Liberty), Agro voće d.o.o. Laktaši (Agro voće), Agape Gorica Dodik i Ivana Dodik s.p. Banja Luka (Agape), and Fruit Eco d.o.o. Gradiška (Fruit Eco) represent a group of entities operating in BiH, including the hospitality and wholesale sectors.

All of these entities receive assistance from RS public funds through preferential treatment as a result of being owned by the Dodik family.

OFAC sanctions Global Liberty for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Igor and Gorica.

OFAC sanctions Agro voće and Agape for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Gorica.

OFAC sanctions Fruit Eco for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Igor.

Implications of Sanctions

As a result of today's action, all property and interests in property of the above-listed sanctioned persons that are in the United States or in the possession or control of US persons are blocked and must be reported to OFAC.

Additionally, 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 US persons within (or transiting) the United States that involve any property or interests in property of sanctioned or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt.

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.

Furthermore, financial institutions and other persons that engage in certain transactions or activities with sanctioned individuals may expose themselves to sanctions or be subject to enforcement actions.

More information about the individuals sanctioned today is available at this link.