Home » Why South Africa’s Relationship with Russia Is Raising Concerns: Investigating the Role of Mining and Political Donations

Why South Africa’s Relationship with Russia Is Raising Concerns: Investigating the Role of Mining and Political Donations

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Why South Africa’s Relationship with Russia Is Raising Concerns: Investigating the Role of Mining and Political Donations

Title: South Africa’s Ties with Russia Raise Questions about Foreign Policy

Subtitle: Investigation reveals links between key players in South African politics and Russian oligarch

Johannesburg, South Africa (CNN) — South Africa’s stance on Russia’s war in Ukraine has raised eyebrows among observers, considering its self-declared “non-aligned” position. Various actions, including abstaining from voting against Russia in the United Nations and engaging in military exercises with the Russian Navy, have fueled speculation about the country’s true allegiance. The African National Congress (ANC), currently in power, has historical ties to the former Soviet Union. However, recent investigations have shed light on a lucrative relationship between key players in South African politics and Russian interests.

The investigation, conducted by the AmaBhungane Center for Investigative Journalism and anti-corruption activists, uncovered a significant connection in an unexpected place – the Kalahari desert. The United Manganese of Kalahari (UMK) mines, a vital source of manganese used in iron and steel production, have close financial ties to sanctioned Russian oligarch Viktor Vekselberg, a prominent ally of Russian President Vladimir Putin. The ANC-linked Chancellor House (CHH) holding company also has significant involvement in the mines.

Chancellor House had concealed its ties with the ANC for years, but a recent investigation by the Mail & Guardian and other South African media outlets forced the holding company to confirm its links in 2021. Mogopodi Mokoena, CEO of Chancellor House, stated that the company was not a front for ANC funding but aimed to support disadvantaged South African individuals or entities. Notably, Mokoena serves as the chairman of the board of directors of the UMK mining group. Public records reveal that Chancellor House has emerged as the largest donor to the ANC in recent years, with donations totaling at least $2.9 million in 2021.

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Critics argue that this financial link poses a risk to South Africa’s foreign policy towards Russia. Concerns have been voiced regarding the potential influence of foreign Russian money finding its way into South African political coffers. Such a situation may impact the country’s stance on key policies, particularly those related to Russia. Karam Singh, executive director of Corruption Watch, a non-profit anti-corruption group, emphasizes the need for increased vigilance.

Opposition leaders and Russia watchers have expressed unease over the donations and connections between the South African Foreign Ministry, ANC, Vekselberg, and UMK. Steven Gruzd, a Russia and Africa analyst at the South African Institute of International Affairs, believes that South Africa is playing a dangerous game, prioritizing the ANC’s interests at the expense of its citizens. The sensitivity of South Africa’s relationship with the United States is also highlighted, with the recent public criticism from the US ambassador to South Africa, Reuben Brigety II.

While the South African government maintains its “non-aligned” policy and emphasizes the importance of Russian-Ukraine negotiations, the presence of President Cyril Ramaphosa at the Russia-Africa summit in St Petersburg raises concerns about the country’s commitment to its foreign policy stance. The recent announcement that Putin will not attend a forthcoming major summit of the BRICS nations in Johannesburg provides a potential escape route for South Africa, given the presence of an International Criminal Court arrest warrant against Putin.

The investigation has revealed longstanding links between South Africa and Vekselberg, with footage dating back to 2006 showing their presence together at a business forum in Cape Town. The United States sanctioned Vekselberg in recognition of his support for the Russian invasion of Ukraine. Despite these sanctions, Vekselberg continues to hold a significant stake in UMK through business records in Cyprus, potentially reducing the impact of repercussions from the US government.

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Renova Group, Vekselberg’s business entity, denies any influence on the ANC and asserts that there is no conflict of interest. UMK also maintains that Vekselberg is not a direct shareholder and does not exert any control over the company. However, concerns persist among skeptical South Africans and the local media about the potential consequences of South Africa’s policy towards Russia.

The investigation’s findings highlight the complex interplay between business interests, politics, and foreign policy, casting a spotlight on the need for transparency and accountability in South Africa’s engagement with Russia.

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