Russian State Accused by Putin of Paying Billions to Wagner Paramilitaries

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President Vladimir Putin has revealed that the Russian state provided billions of dollars in funding to the Wagner paramilitary group, shedding light on the details of the recent mutiny.

In a surprising admission, Putin confirmed on Tuesday that Wagner had been fully financed by the state, with payments totaling Rbs86bn ($1bn) made between May 2022 and May 2023, along with an additional Rbs110bn in insurance payouts. This revelation coincided with Wagner’s founder, Yevgeny Prigozhin, being located in Belarus by the country’s president, and the Russian defense ministry assuming control over the paramilitary group’s heavy weapons.

Following Prigozhin’s failed advance on Moscow last Saturday, Putin is now taking steps to incorporate Wagner into the official military. Alongside the direct payments to Wagner, Putin also disclosed that Concord, Prigozhin’s catering company, had received Rbs80bn in army catering contracts. Putin added, “I hope nobody stole anything, or didn’t steal much, but we’ll sort this out.”

The deal brokered by Belarus President Alexander Lukashenko to end the rebellion included providing “security guarantees” for Prigozhin’s safe passage from Russia. Lukashenko confirmed that Prigozhin is presently in Belarus. Additionally, Wagner’s fighters have returned to base camps in the occupied Luhansk region of Ukraine, following their advance on the Russian city of Rostov and their march towards Moscow, which posed an unprecedented challenge to Putin’s authority.

The events on Tuesday occurred as Putin aimed to regain control and address the perceived concessions made to Wagner, even drawing criticism from some of his staunch supporters of the war in Ukraine. Russia’s main security service, the FSB, announced the closure of its investigation into the rebellion, stating that the participants had ceased activities directly related to the crime.

Putin’s decision not to press charges against Prigozhin, despite previously condemning him for a “stab in the back,” marked a significant shift. Putin’s spokesperson, Dmitry Peskov, stated that the Russian leader opted against prosecution to avoid bloodshed, emphasizing that agreements and promises were being upheld. Putin reassured soldiers and security service officers during a meeting on Tuesday, praising them for their role in quelling the uprising.

Wagner has yet to confirm whether it will surrender its weapons to the Russian defense ministry. Viktor Zolotov, head of the national guard and a former bodyguard to the president, discussed the possibility of providing his units with heavy weaponry after attending Putin’s speech at the Kremlin.

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