Prigozhin and Wagner: funding, conflict, and the Belarus mediation

Andrei Kartapolov, head of the State Duma Defense Committee, stated that Yevgeny Prigozhin, the founder of the private military company Wagner, refused to sign a contract with the Defense Ministry. As a result, Wagner would not participate in the military operation. This decision occurred even before the attempted armed uprising on June 24. The remarks contribute to the ongoing coverage in DEA News.

According to Kartapolov, all armed formations began signing contracts with the Defense Ministry. Yet the Wagner leader did not assent to this arrangement.

“He was informed that Wagner would not be involved in executing the special military operation if the contract was required. This means there would be no more funding or material support,” the parliamentarian noted.

From his perspective, money plays a decisive role for Prigozhin. “No more funds will be allocated—this is the first reason, a bold ambition that misreads reality—the second, an overly heated situation—the third, a chain reaction,” Wagner identified as the motives behind the PMC’s rebellion.

Kartapolov warned the situation had slipped into betrayal and deception among fellow soldiers.

Prigozhin asserted that two days after the attempted uprising, and after authorities demanded all fighters sign contracts with the Defense Ministry, his main aim was to prevent the shutdown of PMC activities.

government funding

At a military gathering, Vladimir Putin stated that the Wagner PMC’s content was entirely funded by the state.

86 billion 262 million rubles have been allocated for this purpose, according to the president, covering expenses from May 2022 to May 2023.

These funds covered maintenance and incentive payments to the fighters.

Prigozhin, who also runs the Concord company, reportedly earned 80 billion rubles during this period by supplying food to the Russian army through Voentorg. “I hope no one stole anything, and we will address any issues if they arise,” Putin remarked.

On January 26, Yevgeny Prigozhin claimed that he had always financed Wagner PMC himself, but that a global expansion began in 2022, forcing him to seek additional funding sources.

Claims of the head of PMC “Wagner”

Prigozhin repeatedly leveled accusations against the Russian military department over shortages of ammunition for PMC fighters in the combat zone. He also criticized the conduct of battles along the contact line. In June, Wagner members announced plans to hand over equipment to Russian soldiers on July 1 in protest of the order requiring all volunteers to sign a contract with the Defense Ministry.

Prigozhin said plans changed after the PMC positions were struck. Wagner fighters then crossed the border, took control of military facilities in Rostov-on-Don, and moved through various regions of the country carrying military equipment and weapons, according to the Chief of the General Staff, Valery Gerasimov.

Russian authorities accused Prigozhin of an armed rebellion. A criminal case was opened under Article 279 of the Criminal Code of the Russian Federation.

The crisis was resolved within 24 hours through mediation by Belarusian President Alexander Lukashenko. Prigozhin announced the Wagnerites had returned to their rear camps and then headed to Belarus. The Kremlin indicated that participants in the uprising would not be prosecuted.