US Imposes New Sanctions on Companies Linked to Dodik's Son, Including 'Prointer' and Una TV

(Patria) - The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today sanctioned a network of two individuals and seven entities that represent the main sources of income for Republika Srpska President Milorad Dodik, who is under U.S. sanctions, and his family, the U.S. Department of the Treasury announced today.

Dodik has used his official position for personal enrichment through companies linked to him and Igor Dodik.

For example, during 2024, Igor and Dodik used their control over high-ranking officials in BiH authorities to manipulate the drafting of the BiH state budget so that a state-level contract could be awarded to Prointer ITSS d.o.o. Banja Luka Clan Infinity International Group - an entity within the aforementioned network - bypassing the competitive process.

- The United States condemns Dodik's continued efforts to undermine institutions that ensure peace and stability in Bosnia and Herzegovina and the region. We will continue to expose the fraudulent schemes that enable Dodik and his family to exploit their own people for personal gain - said U.S. Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson.

Reasons

Dodik is not only robbing the citizens of Bosnia and Herzegovina with his corrupt behavior, but he is also endangering their security with his constant threats to continue the secession of Republika Srpska from BiH.

Dodik's recent official decision to propose the "disassociation" of Republika Srpska from BiH is a continuation of obvious anti-Dayton Peace Agreement (DPA) actions and a threat to the peace and stability of the region.

With his corruption and secessionist rhetoric, Dodik continues to undermine BiH institutions and enrich his family at the expense of the people, further jeopardizing BiH's future in Euro-Atlantic institutions.

The U.S. sanctioned Dodik on January 5, 2022, in accordance with Executive Order (E.O.) 14033 for being responsible for or complicit in, or for having directly or indirectly engaged in, or for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, a person whose property and interests in property are blocked pursuant to E.O. 14033, as well as for corrupt activities.

Prior to that, the United States had placed Dodik on the list of sanctioned persons on July 17, 2017, in accordance with Executive Order 13304, for obstructing or threatening to obstruct the DPA.

Additionally, the United States sanctioned Dodik's adult children, Igor and Gorica Dodik, on October 20, 2023, in accordance with Executive Order 14033 for materially assisting, sponsoring, or providing 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.

Dodik's Family Network

Dodik has used his official position to direct contracts with the Government of Republika Srpska to a network of private companies that he and Igor control.

While Igor controls many companies in this network, he conceals his personal connection to these companies by relying on various nominal owners and directors.

Infinity International Group d.o.o. Banja Luka (Infinity) is a holding company in BiH that directly or indirectly owns or is the majority owner of at least five other companies based in BiH: Prointer ITSS d.o.o. Banja Luka Clan Infinity International Group (Prointer), Kaldera Company EI PGP d.o.o. (Kaldera), Infinity Media d.o.o. (Infinity Media), K-2 Audio Services Banja Luka d.o.o. (K-2), and Una World Network d.o.o. (Una).

Additionally, Sirius 2010 d.o.o. Banja Luka (Sirius) is an IT company operating within the Dodik family network. Along with Prointer and Kaldera, Sirius is well-known in BiH for lucrative government contracts.

Prointer and Sirius together provide information technology (IT) goods and services to organizations within the Republika Srpska and BiH level governments, while Kaldera primarily provides services in the engineering sector.

In the case of many of the listed entities, Igor is often involved in business from the shadows. For example, in April 2024, the then-director of Sirius resigned, and Igor participated in hiring his replacement.

Igor was ultimately responsible for ensuring that each company - including Prointer, Sirius, and Kaldera - made payments to meet its financial obligations.

Additionally, Igor approved Kaldera's debt settlement plan with a local bank, and shortly thereafter, a loan agreement was concluded between Prointer and Kaldera.

Igor also participated in organizing a meeting where new contracts were discussed with his associates and the general director of Prointer.

In this regard, this Dodik network often restructures corporate ownership to conceal the family's involvement in companies and avoid sanctions.

For instance, Prointer took ownership of Alternativna televizija d.o.o. (ATV) in 2021, but quickly transferred ownership to Infinity Media and K-2 after OFAC sanctioned ATV on January 5, 2022, in accordance with Executive Order 14033, because it was owned or controlled by, or had acted or purported to act for or on behalf of, directly or indirectly, Dodik.

In early 2024, K-2 was in the process of merging with ATV, in which K-2 would absorb and retain all of ATV's assets, and ATV would cease to exist.

Although Đorđe Đurić (Đurić) and Milenko Čičić (Čičić) hold ownership and management positions within this network, Igor ultimately directs financial decisions for companies within the network, including Prointer and Kaldera, and business decisions require Igor's approval.

Đurić, as the primary owner of Infinity and its subsidiaries, is a close associate of Igor who often assists him in financial matters. For example, Đurić and Igor intentionally took steps to conceal their involvement in an offshore bank account and an entity they jointly controlled, likely enabling Igor to transfer millions of euros abroad.

Čičić is the general director of Kaldera. In this capacity, Čičić and the general director of Prointer reported to Igor on the operations of Kaldera and Prointer. Furthermore, on one occasion, Čičić represented Igor at a meeting with some of Igor's business partners and carried out a series of financial transactions with these same business partners on Igor's behalf.

It is important to note that the "Milenko Čičić" sanctioned today is not the same person as the "Milenko Čičić" who was the sole owner of Kaldera until its sale to Prointer at the end of December 2019.

Prointer, Kaldera, Sirius, and Čičić are sanctioned in accordance with Executive Order 14033 because they are owned or controlled by, or have acted or purported to act for or on behalf of, directly or indirectly, Igor, a person whose property and interests in property are blocked in accordance with Executive Order 14033.

Đurić is sanctioned in accordance with Executive Order 14033 for materially assisting, sponsoring, or providing financial, material, or technological support for, or goods or services to or in support of, Igor.

Infinity is sanctioned in accordance with Executive Order 14033 because it is owned or controlled by, or has acted or purported to act for or on behalf of, directly or indirectly, Đurić, a person whose property and interests in property are blocked in accordance with Executive Order 14033.

Infinity Media is sanctioned in accordance with Executive Order 14033 because it is owned or controlled by, or has acted or purported to act for or on behalf of, directly or indirectly, Infinity, a person whose property and interests in property are blocked in accordance with Executive Order 14033.

K-2 and Una are sanctioned in accordance with Executive Order 14033 because they are owned or controlled by, or have acted or purported to act for or on behalf of, directly or indirectly, Infinity Media, a person whose property and interests in property are blocked in accordance with Executive Order 14033.

Consequences of Sanctions

As a consequence of today's measure, all property and interests in property of the above-mentioned sanctioned persons that are in the U.S. or are in the possession or control of U.S. persons are blocked and must be reported to OFAC.

In addition, all property owned directly or indirectly, individually or collectively, by 50 percent or more of one or more blocked persons is also blocked.

Unless authorized by a general or specific license issued by OFAC, or otherwise exempted by OFAC regulations, all transactions by U.S. persons or within (or transiting through) the United States that involve any property or interests in property of persons listed on the list of sanctioned persons or otherwise blocked persons are generally prohibited.

In addition, financial institutions and other persons that engage in certain transactions or activities with sanctioned entities and persons may themselves be sanctioned or subject to appropriate activities to implement this decision.

These prohibitions include the provision of contributions or provisions of funds, goods, or services by, to, or for the benefit of any person listed on the list of sanctioned persons, or the receipt of any financial support, goods, or services from such a person.

The strength and integrity of OFAC sanctions stem not only from OFAC's ability to designate and add persons to the SDN list (list of blocked persons) but also from its willingness to remove certain persons from the SDN list in accordance with the law.

The ultimate goal of sanctions is not punishment, but positive change in behavior. Information regarding the process for applying for removal from the OFAC list, including the SDN list, is available at this link: OFAC’s FAQ 897.