Today, the US Treasury Department’s Office of Foreign Assets Control (OFAC) has a network of two individuals and seven organizations that are major sources of income for US-sanctioned Republika Srpska (RS) President Milorad Dodik and his family.
OFAC says that Dodik has used his official position to amass personal wealth through businesses associated with him and Igor Dodik. For example, in 2024, Igor and Dodik exercised their control over senior officials of the Government of Bosnia and Herzegovina (BiH) to manipulate the draft state budget of BiH to provide Prointer ITSS d.o.o. with a state-level contract. Banja Luka Clan Infinity International Group – a networking company – eliminated from the competitive process.
“The United States condemns Dodik’s continued efforts to undermine the institutions that have brought peace and stability to Bosnia and Herzegovina and the region,” said Brian E. Nelson, Treasury Under Secretary for Terrorism and Financial Intelligence.
“We will continue to expose the fraudulent schemes that allow Dodik and his family to exploit their people for their personal gain.”
The Ministry of Finance says that Dodik is not only exploiting the people of Bosnia and Herzegovina through his corrupt behavior, but also endangering their security through his repeated threats to secede Republika Srpska from Bosnia and Herzegovina.
Dodik’s recent announcement of an official decision to propose the “secession” of RS from BiH is a continuation of blatant activities against the Dayton Peace Agreement and threatens the peace and stability of the region. Through his corruption and secessionist rhetoric, Dodik continues to undermine BiH’s institutions and enrich his family at the expense of the people, further jeopardizing BiH’s future in Euro-Atlantic institutions.
The United States sanctioned Dodik on January 5, 2022, pursuant to Executive Order (E.O.) 14033 for being responsible for, complicit in, or a direct or indirect participant in a violation or act that obstructed or threatened the implementation of the DPA and for corrupt activities. The United States previously designated Dodik on July 17, 2017, pursuant to E.O. 13304 for obstructing or threatening to obstruct the Dayton Agreement. In addition, on October 20, 2023, the United States also imposed sanctions against Dodik’s adult children, Igor and Gorica Dodik, pursuant to E.O. 14033 for material support, sponsorship, or the provision of financial, material, or technological support or goods or services in support of Dodik, a person whose property and interests in property are frozen pursuant to E.O. 14033.
Dodik used his official position to pass on RS government contracts to a network of private companies that he and Igor oversee. While Igor controls many of the companies in this network, he disguises his personal connection to the companies by relying on clear nominal owners and directors. Infinity International Group d.o.o. Banja Luka (Infinity) is a holding company in Bosnia and Herzegovina that directly or indirectly owns or is the majority owner of at least five other companies based in Bosnia and Herzegovina: Prointer ITSS d. o.o. Banja Luka Clan Infinity International Group (Prointer), Kaldera Company El 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).
Dodik used his official position to pass on RS government contracts to a network of private companies that he and Igor oversee. While Igor controls many of the companies in this network, he disguises his personal connection to the companies by relying on separate nominal owners and directors. Infinity International Group d.o.o. Banja Luka (Infinity) is a BiH holding company that directly or indirectly owns or is the majority owner of at least five other BiH-based companies: Prointer ITSS d. o.o. Banja Luka Clan Infinity International Group (Prointer), Kompania Kaldera El 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).
In addition, Sirius 2010 d.o.o. Banja Luka (Sirius) is an information technology (IT) company operating in the Dodik family network. In addition to Prointer and Kaldera, Sirius is known in Bosnia and Herzegovina for its lucrative government contracts. Together, Prointer and Sirius provide IT goods and services to organizations in the governments of RS and Bosnia and Herzegovina, while Kaldera is mainly active in the engineering sector.
At many of these companies, Igor is often involved in the business operations behind the scenes. For example, in April 2024, the then director of Sirius resigned and Igor was involved in hiring a replacement. Igor was ultimately responsible for ensuring that each company – including Prointer, Sirius and Kaldera – made payments to meet its financial obligations. In addition, Igor approved a plan to pay off Kaldera’s debt to a local bank, after which a loan between Prointer and Kaldera was immediately implemented. Igor was also involved in organizing a meeting to discuss new contracts with his employees and the managing director of Prointer.
In this context, this Dodik network often restructures company ownership to disguise the family’s involvement in the company and avoid sanctions. For example, Prointer acquired 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, pursuant to E.O. 14033 because it is owned or controlled by Dodik or has acted or purported to act, directly or indirectly, for or on behalf of Dodik. In early 2024, K-2 was in the process of merging with ATV. At that time, K-2 would acquire and retain all of ATV’s assets and ATV would cease to exist.
Although Djordje Djuric and Milenko Cicic hold ownership and management positions, respectively, within the network, Igor ultimately manages the financial decisions for the network companies, including Prointer and Kaldera, and Igor’s approval is required for business decisions. Djuric, as the ultimate owner of Infinity and its subsidiaries, is a close associate of Igor, who often assists him with financial activities. For example, Djuric and Igor took deliberate steps to conceal their involvement in an offshore bank account and a company over which they shared control, which may have enabled Igor to transfer millions of euros abroad.
Cicic is the General Manager of Kaldera. In this capacity, the General Manager of Cicic and Prointer reported to Igor on the business activities of Kaldera and Prointer. In addition, Cicic once represented Igor in a meeting with some of Igor’s business partners and entered into a number of financial transactions with the same business partners on Igor’s behalf. It is important to note that the “Milenko Cicic” sanctioned today is a different person than the “Milenko Cicic” who was the sole owner of Kaldera until it was sold to Prointer at the end of December 2019.
Prointer, Kaldera, Sirius, and Cicic are sanctioned under E.O. 14033 because they are owned or controlled by Igor or are acting or purporting to act, directly or indirectly, for or on behalf of Igor, a person whose property and proprietary interests are frozen pursuant to E.O. 14033.
Djuric is sanctioned under E.O. 14033 for materially supporting, sponsoring, or providing financial, material, or technological support or goods or services to or in support of Igor.
Infinity is sanctioned under E.O. 14033 for being owned or controlled by Gjuriq or acting or purporting to act, directly or indirectly, for or on behalf of Gjuriq, a person whose property and proprietary interests are frozen pursuant to E.O. 14033.
Infinity Media is sanctioned under E.O. 14033 because it is owned or controlled by Infinity or has acted or purports to act, directly or indirectly, for or on behalf of Infinity, a person whose ownership and proprietary interests are frozen pursuant to E.O. 14033.
K-2 and Una are sanctioned under E.O. 14033 because the entity is owned or controlled by Infinity Media or has acted or purports to act, directly or indirectly, for or on behalf of Infinity Media, a person whose ownership and proprietary interests are frozen under E.O. 14033.
Impact of sanctions
As a result of today’s action, all property and ownership interests of certain persons described above that are located in the United States or owned or controlled by U.S. persons will be frozen and must be reported to OFAC. In addition, any entity that is owned directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons will be blocked. Unless authorized by a general or specific license issued by OFAC or an exemption applies, OFAC regulations generally prohibit all transactions by U.S. persons or within (or through) the United States involving property or interests in property of designated or otherwise encumbered persons.
In addition, financial institutions and other persons that engage in certain transactions or activities with sanctioned entities and individuals may be subject to sanctions or enforcement actions. Prohibitions include making donations or providing funds, goods or services from, to or for the benefit of a designated person or receiving donations or providing funds, goods or services from such a person./TheGeopost/