US imposes new sanctions on individuals and companies close to the Dodik family

(Patria) - The Office of Foreign Assets Control of the U.S. Department of the Treasury (OFAC) today imposed sanctions against one individual and one business entity that support a corrupt patronage network in BiH that attempts to circumvent U.S. sanctions, stated in a release by the U.S. Embassy in Sarajevo.

This network is directly linked to Igor Dodik, the sanctioned son of the sanctioned President of Republika Srpska, Milorad Dodik. For many years, Dodik has used his official position to accumulate personal wealth through companies linked to him and Igor. This corruption has led to a weakening of public trust in BiH institutions and the rule of law, the statement says.

- President of Republika Srpska Milorad Dodik, his associates and supporters continue to use their privileged position to undermine public trust in regional frameworks for peace and the institutions that have brought stability and security to BiH - said Bradley T. Smith, Acting Under Secretary for Terrorism and Financial Intelligence at the U.S. Department of the Treasury.

Smith emphasizes that the United States remains committed to exposing the efforts of Dodik and his family to maintain their corrupt patronage networks.

Today's action reinforces previous sanctions against Dodik, exposing Igor's blatant attempts to circumvent U.S. sanctions and targeting individuals who enable activities that hinder democratic development in Republika Srpska.

The United States sanctioned Dodik on January 5, 2022, under Executive Order (E.O.) 14033 for being responsible for violating or obstructing the Dayton Peace Agreement (DPA), as well as for corrupt activities.

Today’s OFAC designation of Vladimir Perisic and Elpring d.o.o. Laktasi exposes Igor Dodik’s blatant attempts to evade U.S. sanctions. The United States will use all tools at our disposal against those who provide major sources of revenue for Dodik’s patronage network and enable…

— US Embassy Sarajevo (@USEmbassySJJ) November 6, 2024

The United States previously sanctioned Dodik on July 17, 2017, under E.O. 13304 for obstructing the DPA. Additionally, the U.S. sanctioned Dodik's adult children, Igor and Gorica, on October 20, 2023, under E.O. 14033 for providing material assistance, financial or technological support to Dodik, a person whose property and interests are blocked under E.O. 14033.

Dodik's efforts to enrich themselves have led to the sanctioning of key parts of their corrupt patronage network, including several entities and individuals under Igor's direct control. Since then, the Dodik network has launched an aggressive strategy to circumvent the effects of sanctions by restructuring and re-establishing companies to conceal control and transfer assets from designated entities.

Dodik has used his official position to direct Republika Srpska Government contracts to a network of private companies he manages with Igor. Although Igor controls many companies in that network, he conceals his connection by relying on nominal owners and directors.

One of those individuals is Vladimir Perišić, general director of Prointer ITSS, sanctioned by OFAC on June 18, 2024. As general director of Prointer - an entity under Igor's control - Perišić regularly reported to Igor, sought his instructions, and made business decisions according to his directives.

After Kaldera Company was sanctioned on June 18, 2024, Igor instructed Milenko Čičić, sanctioned on June 18, 2024, to establish Elpring d.o.o. Laktaši, which would replace Kaldera. With Igor's approval, Čičić founded Elpring and organized the transfer of all property rights, including Kaldera's workers, to Elpring.

Perišić and Elpring are sanctioned under E.O. 14033 because they are owned or controlled by Igor Dodik.

As a result of today's action, all property and interests in property of sanctioned persons in the U.S. or under the control of U.S. persons are blocked and must be reported to OFAC.

Transactions by U.S. persons or those involving property of sanctioned persons are prohibited unless authorized by a special license issued by OFAC.

These prohibitions include the provision of funds, goods, or services to sanctioned persons and the receipt of funds, goods, or services from them.