The Office of Foreign Assets Control of the United States Department of the Treasury (Treasury) issued sanctions on Monday against the General Directorate of Mines (DGM) of Nicaragua and officials operating in the gold sector of the Nicaraguan economy.
These sanctions are given under a new Executive Order signed by President Joe Biden, which expands the Treasury’s authority to “hold the Ortega Murillo regime responsible for its attacks on freedom of expression.” In addition, it prohibits US investments in sectors related to gold in the Central American country.
“The ongoing attacks by the Ortega-Murillo regime against democratic actors and members of civil society and the unjust detention of political prisoners show that the regime feels that it is not bound by the rule of law,” Undersecretary Brian Nelson said in a written statement. of the Treasury for Terrorism and Financial Intelligence.
According to Nelson, with these new sanctions, the US government will be able to “deny the Ortega-Murillo regime the resources it needs to continue undermining democratic institutions in Nicaragua.”
Likewise, it points out that the DGM has managed most of the mining operations in Nicaragua on behalf of the Managua government, and through it, Ortega Murillo would be “using the profits derived from the production and sale of gold to line his own pockets and pay those who keep the regime in power (…).
By sanctioning the DGM, the Treasury Department intends to cut off the ability of the “Ortega Murillo regime to use gold profits to oppress the Nicaraguan people.”
Among the sanctioned officials is Reinaldo Lenín Cerna, described by the Treasury as “a close confidant” of Ortega Murillo, and a former head of security. According to the US government, he “was involved in numerous incidents of violence, murder and torture and admitted to being associated with known terrorist groups.”
Gold one of the main items in Managua
Gold exports in Nicaragua have increased significantly after the entry into force in 2006 of a Free Trade Agreement, known as CAFTA for its acronym in English.
And the main market for Nicaraguan gold is the United States, according to official data. In 2021 this item was exported almost 80% to Washington, representing almost a billion dollars.
“This measure is a strong blow,” he tells the voice of america former opposition deputy Eliseo Núñez, who is in exile in Costa Rica.
The opponent assures that the measure was something that the Ortega government “already expected” and could carry out maneuvers to evade US sanctions.
“Let’s not be surprised that they try to export gold to Canada, because the mining companies are Canadian, we will have to see the reaction of the Canadian government to this,” adds Núñez.
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