The Office of Foreign Assets Control (OFAC) of the Treasury Department of the United States of America (USA) has sanctioned two individuals and seven companies from Bosnia and Herzegovina, which are associated with Milorad Dodik, the president of the Bosnian-Herzegovinian entity Republika Srpska, and his son Igor.
As stated in the OFAC statement from June 18, they are part of a network that provides "significant sources of income" for Milorad Dodik and his family.
Milorad Dodik has been under US sanctions for a long time, as have his son Igor and daughter Gorica.
Milenko Čičić and Đorđe Đurić, and the companies Infinity International Group Banja Luka, Infinity Media, K-2 audio services, Kaldera Company, Prointer ITSS, Sirius 2010 and Una World Network were added to the list of sanctions.
Among those sanctioned are the software company "Prointer ITSS" and the company "Una World Network", which owns the media house "Una TV".
According to OFAC, Čičić is the director of "Kaldera", while Đurić is the owner of the company "Infinity" and its subsidiaries. OFAC points out that Milorad Dodik "used his official position to accumulate personal wealth through companies associated with him and Igor Dodik".
It is pointed out that the 2024 draft of the BiH state budget was manipulated, "so that the contract at the state level could be awarded to the company Prointer ITSS doo" without the public procurement procedure.
"The United States of America condemns Dodik's continued efforts to erase the institutions that have ensured peace and stability for Bosnia and Herzegovina and the region. We will continue to expose the fraudulent schemes that allow Dodik and his family to exploit their own people for personal gain," said the Ministry of Finance's Undersecretary for Terrorism and Financial Intelligence Brian E. Nelson.
Sanctions, among other things, mean freezing the assets of individuals and entities in the US, prohibiting US citizens from doing business with them, while financial institutions - such as banks - may also be targeted for sanctions if they cooperate with them.
Dodik family network and connections with public procurement
Milorad Dodik used his official position to direct RS Government contracts to a network of private companies that he and his son Igor supervise, according to OFAC.
"While Igor controls many of the companies in this network, he conceals his personal connection to them by relying on various nominal owners and directors," the statement explained.
Infinity International Group doo 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 doo Banja Luka Clan Infinity International Group (Prointer), Kaldera Company El PGP doo (Kaldera), Infinity Media doo (Infinity Media), K-2 Audio services Banja Luka doo (K-2), and Una World Network doo (Una). Additionally, Sirius 2010 doo Banja Luka (Sirius) is an IT company that operates within the network of the Dodik family.
"Along with Prointer and Kaldera, Sirius is known in Bosnia and Herzegovina for its lucrative government jobs. Together, Prointer and Sirius provide IT goods and services to organizations throughout the RS and governments of Bosnia and Herzegovina, while Kaldera primarily operates in the engineering sector," the announcement states.
What is Igor Dodik's connection with companies?
Among other things, OFAC states that in April 2024, the director of the company "Sirius" resigned, and that Igor Dodik was involved in choosing his successor.
They also add that he was responsible for each of the involved companies fulfilling their financial obligations.
Also, as OFAC calls it, "Dodik's network", it is often reorganized to hide their involvement in the deals and avoid sanctions.
They state that Prointer took over Alternative Television (ATV) in 2021, but soon transferred ownership to Infinity Media and K-2, after ATV ended up on the US "blacklist" in January 2022.
"At the beginning of 2024, the process of merging K-2 and ATV was ongoing, and K-2 should absorb and retain all assets of ATV, while ATV would cease to exist," explained OFAC.
For Čičić and Đurić, individuals who are new to the list of sanctions, the Office states that they occupy ownership and director positions within the network, but that Igor ultimately "manages financial decisions" and that his approval is required for business decisions.
"Đurić and Igor [Dodik] deliberately took steps to conceal their involvement in an offshore bank account, and entity over which they shared control, which likely enabled Igor [Dodik] to move millions of euros out of the country," OFAC said.
What do they say at the US Embassy in Sarajevo?
Regarding the sanctions, the US Embassy in Sarajevo also spoke out, warning that the United States will continue to "use sanctions as a means of fighting corruption and hold individuals accountable for their actions."
"Individuals or entities that carry out activities with these individuals and entities that are sanctioned today expose themselves to the risk of sanctions," the Embassy warns in a post on the X social network.
The US put Milorad Dodik on the sanctions list on January 5, 2022, because he directly or indirectly participated in a violation or an act that hindered or threatened the implementation of the Dayton Peace Agreement, as well as for corrupt activities.
Dodik was previously sanctioned by the US on July 17, 2017, for disrupting or threatening to disrupt the Dayton Peace Agreement.
Igor and Gorica Dodik, his son and daughter, are under US sanctions from October 20, 2023.
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