By: Ecofin Agency

Gold mined in conflict areas of eastern Democratic Republic of Congo continues to feed regional smuggling networks. The United States has stepped up sanctions to cut off funding sources for armed groups operating in the region.

The United States announced new sanctions against a Rwandan gold refinery that it accused of processing gold mined illegally in eastern Democratic Republic of Congo from areas under the control of the M23 rebel group.

The U.S. Department of the Treasury announced the measures on June 25, 2026. The sanctions target Gasabo Gold Refinery Ltd, based in Kigali, as well as several individuals and entities linked to its operations. Washington described the move as another step in its effort to dismantle networks that profit from the illicit minerals trade and fuel instability in eastern DRC.

According to the Treasury Department, Gasabo Gold Refinery participated in a supply chain that sourced and processed gold extracted illegally in the DRC. The network allegedly transported the gold from eastern Congo into Rwanda, where the refinery processed it in Kigali.

U.S. authorities said actors linked to the M23 rebel group and elements of the Rwanda Defence Force (RDF) allegedly supported the network. Washington said at least 60 kilograms of gold, worth several million dollars, moved through the network to Gasabo Gold Refinery during the early months of 2026.

The sanctions also target Jean Malic Kalima, whom the Treasury identified as chairman of Gasabo Gold Refinery, and Bosco Kayobotsi, the company's managing director. The measures further designate several companies associated with Kalima, including Bugambira Mines Ltd, Wolfram Mining and Processing Ltd, and Rwinkwavu Mining Corporation Ltd.

The United States imposed the sanctions under Executive Order 13413, as amended. The order authorizes sanctions against individuals or organizations accused of contributing to instability in the DRC, including through material, financial or logistical support for armed groups.

U.S. pressure

The decision comes as Washington increases pressure on individuals and entities that it accuses of fueling the conflict in eastern DRC. Since the beginning of the year, the United States has imposed a series of sanctions targeting military officials, armed groups and business networks linked to the illicit exploitation of Congolese natural resources.

On March 2, 2026, the Office of Foreign Assets Control (OFAC) sanctioned the Rwanda Defence Force and several Rwandan military officials over their alleged support for the M23. On April 30, Washington also sanctioned former Congolese President Joseph Kabila, accusing him of supporting the M23/AFC alliance. On June 2, the United States imposed sanctions on commanders from both the FDLR and the M23.

Moreover, the measures form part of broader U.S. pressure following the signing of the Washington Agreements for Peace and Prosperity between the DRC and Rwanda in December 2025. The United States said it wants both parties to honor their commitments, particularly by ending support for armed groups operating in eastern Congo.

Blood gold

The Gasabo Gold case highlights the strategic role that gold plays in the conflict economy. Gold remains one of the most sensitive commodities in regional smuggling networks because traders can transport, conceal and integrate refined gold into formal commercial supply chains more easily than many other minerals.

Washington said these networks allow armed groups to finance their operations through the extraction, taxation and control of illicit mineral flows. In eastern DRC, these activities overlap with a prolonged security crisis marked by mass population displacement, weakened state authority and the expansion of wartime economies.

The U.S. sanctions freeze all assets and interests in property belonging to the designated individuals and entities that fall under U.S. jurisdiction. The measures also prohibit U.S. persons from conducting transactions with them. In addition, non-U.S. individuals and companies could face restrictive measures if they facilitate prohibited transactions or attempts to evade the sanctions.

For Kinshasa, the decision represents an important diplomatic signal. The sanctions reinforce the Congolese government's long-standing allegations that part of the minerals extracted illegally in eastern DRC transit through neighboring countries before entering regional and international export supply chains.

However, the practical impact of the sanctions will depend on their enforcement, the cooperation of financial and commercial intermediaries, and the ability of regional authorities to monitor mineral supply chains. While the U.S. designations increase pressure on the targeted actors, they alone are unlikely to dismantle regional gold smuggling networks.