Arms for minerals: Guinea's £130m deal with UAE's Streit Group
Guinea's military authorities have signed an arms contract with the Streit Group, a Russian businessman-led company from the United Arab Emirates. In exchange for military equipment, Guinea offers access to valuable mineral deposits, primarily bauxite, the world's third-largest producer.
The contract, valued at approximately £130 million, includes the delivery of hundreds of armoured vehicles for Guinea's military and security services. The Streit Group, led by German Gutorov, who holds both Russian and Canadian citizenship, was previously under UN sanctions for violating the arms embargo on Sudan.
Military.africa portal reports that Guinea will receive 200 Spartan transporters, the same number of Cougar mine-resistant vehicles, and 150 Toyota off-road vehicles as part of the contract. The order also includes 20 Triton 850 patrol boats.
Resources for weapons
Due to financial problems, the government of Guinea offered Gutorov mining concessions, particularly for bauxite deposits. The portal AfricaIntelligence reports that General Sadiba Koulibaly lost his position as chief of staff of the armed forces after opposing the transfer of bauxite mines to the United Arab Emirates.
According to the African Institute for Security Studies, exchanging weapons for access to natural resources is becoming increasingly common in Africa. Zimbabwe offered mining concessions to Chinese and Russian arms suppliers, while China used arms sales to access oil deposits in Nigeria and Sudan.
Strategic position of Guinea
Streit Group, a global manufacturer of armoured vehicles with 12 plants worldwide, is strengthening its position in the African arms market. Last year, the company opened a factory in Uganda that produces Tornado-armoured vehicles.
Since 2021, Guinea has been ruled by a military junta led by Colonel Mamady Doumbouya. The country is attracting the attention of the United Arab Emirates, as evidenced by the visit of Sheikh Shakhbout Al Nahyan, the UAE representative for Africa, in September last year.
Although Guinea is one of the poorest countries in Africa, it possesses significant, unexploited natural resources, including the world's largest bauxite deposits and valuable gold and iron ore deposits.
Putin circumvents Western sanctions
Africa not only trades in weapons but also in oil. Recent reports indicate that Russia has found a new way to circumvent Western sanctions by using one of the countries on the continent—the Central African Republic. It uses it as a middleman in trading its sanctioned resources. The country’s energy minister, Arthur Piri, signed a contract with the Cameroonian company Neptune Oil, leading to a monopoly in the fuel market and a drastic increase in fuel prices.
As a result of the agreement, fuel prices in the Central African Republic are nearly twice the global average, exacerbating the economic crisis in one of Africa's poorest countries. The International Monetary Fund detected irregularities in the country's finance ministry and recommended a reduction in fuel prices, but the government rejected these recommendations.
Russian influence in the region is growing, evidenced by mercenaries from the Wagner Group and mining agreements granting Moscow access to gold, diamonds, and uranium deposits. Russia is also building a permanent military base near the capital, Bangui, strengthening its position in the Central African Republic.
