In just a few years, the Wagner Group has emerged as one of Russia’s most (in)famous organizations, in particular for providing security services to pro-Kremlin factions in various warzones around the world. The outfit officially does not exist; it has a shadowy leadership, and it maintains close ties with the military and intelligence services of the Russian Federation. Often described as a private military company (PMC), meaning a mercenary enterprise offering security services to customers operating in dangerous areas, the Wagner Group is actually a conglomerate of firms whose ownership can be ultimately traced to Yevgeny Prigozhin, a rich businessman with close ties to the Kremlin. Besides security-focused entities, it includes energy and mining ventures – the typical clients of other PMCs. This is not only an example of a group controlling separate firms that operate in synergy, but is also an expression of Russia’s peculiar governance structure, where a few oligarchs who control strategic economic sectors are granted access to Putin’s circle and therefore exert considerable political power. The end result is significant overlap between public and private interests; and this has been a major driver of recent Russian foreign policy and how the Wagner Group has been dispatched around the world.

Crime, Catering, and Ukraine

Officially, the Wagner Group does not even exist; and (at least as a PMC) it should not exist: As a matter of fact, setting up a mercenary company or being part of one is illegal in Russia. The group’s structure is complex and not entirely clear, just like its ties to the Russian intelligence and military establishments. Yet despite its de jure non-existance, the Wagner Group remains active in various conflict zones and is deeply intertwined with the Kremlin’s highest defense and foreign policy circles.

A detailed investigation by Bellingcat and other open-source intelligence platforms has shed some light on the Wagner Group’s origins. The nominal founder and head of the conglomerate is Dimitry Utkin, a former member of the Russian special forces (Spetsnaz) and Chechen war veteran who earned the battle name ‘Wagner’ due to his fascination with the Third Reich – hence the Wagner Group’s name. However, he is believed to be just a frontman, as the outfit’s real financial backer is widely believed to be Yevgeny Prigozhin, a wealthy entrepreneur from St. Petersburg, which is also where President Putin first made a name for himself in Soviet politics. Before earning his fortune, Prigozhin had been involved in illicit activities and had been subsequently jailed for nine years on fraud, robbery, and even minor prostitution charges. Later, he started fresh in the restaurant industry and, in the period of chaos and opportunities of the 90s Russia, he became rich by successfully managing a catering activity (Concord Catering). He entered Putin’s inner circle in 2001, when the Putin attended a dinner at his boat restaurant in St. Petersburg.