
III Kinetic Conflicts & DefenceSub-Saharan Africa
Sanctions moved Sudan's war economy rather than breaking it, monitor says
- Institution
- Sudan Transparency and Policy Tracker (STPT)
- Author
- Institutional publication
- Country · language
- Sudan · English
- Affiliation
- Independent monitoring group
Summary
A 54-page October 2026 report by STPT, a Sudan-focused monitoring group, was publicised by Dabanga on 13 October. It finds that since the war began in April 2023, Canada, the EU, the UK, the UN and the US have sanctioned a total of 32 individuals and 20 companies. The authors measure sanctions against three effects: deterrence, disruption and norm signalling. They conclude that more than three years of sanctions have disrupted some financial and supply channels but have not dismantled the networks financing the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF).
According to the report, the army's Defence Industries System (DIS) generated an estimated $2 billion a year in profit before the war, and the army dominates four-fifths of the national economy. The army-owned Zadna, sanctioned by three authorities, the EU, the UK and the US, shifted much of its business to Egypt and the Gulf, grew, and positioned itself for post-war reconstruction contracts. On the RSF side, the sanctioned Al Junaid company, one of two cases the report examines, helped the Dagalo family keep a limited but independent arms-procurement capacity.
The report documents that when supply channels narrowed, the parties turned to at least three alternative markets, Pakistan, Iran and Russia, or to domestic production using hard-to-trace precursor materials. A table in the annex shows a DIS delegation signed a $230 million arms deal with Pakistan in October 2025. Türkiye, five months after DIS was sanctioned, concluded a deal for TB2 and Akıncı drones in November 2023; neither supplier is on a sanctions list. The authors note explicitly that this evidence does not on its own prove sanctions caused the shift. The report's 2026 recommendations include extending the UN arms embargo to the whole country, covering subsidiaries and joint ventures, and diplomatic engagement with Egypt and the Gulf states.
Blind spot
The report studies sanctions at the level of 32 individuals and 20 companies but gives no before-and-after revenue or transaction volumes for any of them; its verdict rests largely on open sources and interviews. The group's governance and funding are not disclosed on its website. Gulf financing and the alleged UAE–RSF link get less numerical treatment than army procurement via Egypt and Türkiye, making the imbalance hard to measure.
Talay assessment
Bottom line
STPT's finding is that Sudan's war continues to be financed through countries and companies outside the sanctions lists. With none of the suppliers listed, the effect of Western sanctions depends on the stance of third countries such as Egypt, the Gulf states, Pakistan and Türkiye. The likeliest path is that the war economy keeps running even as new names are added to the lists.
Likely effects
- TürkiyeNegative1–6 months
The report's emphasis that the TB2 and Akıncı deal came five months after DIS was sanctioned could put Ankara on the list of interlocutors in Western third-country diplomacy.
- Duration of the warNegative6 months+
The survival of the DIS network, estimated to generate $2 billion a year, means the army can finance a protracted war.
- Reconstruction marketNegative6 months+
Zadna positioning itself for post-war contracts exposes foreign contractors to the risk of partnering with sanctioned networks.
Possibilities, ranked
- 1New names, same network55%
The US, the EU and the UK add new individuals and companies, but supply continues through third countries.
Watch: OFAC or the EU adding subsidiaries and joint ventures to their Sudan lists
- 2Embargo extended nationwide25%
The UN Security Council extends the Darfur-only arms embargo to the whole of Sudan.
Watch: A Security Council vote on a draft resolution widening the Sudan embargo
- 3Third countries shift stance20%
Egypt or the Gulf states restrict dealings with sanctioned companies, and financial channels genuinely narrow.
Watch: Official action in Egypt or the Gulf against a company linked to Zadna or the RSF-linked Junaid group
Probabilities are calibrated judgement based on the sources, not measurement, and are revised as new information arrives. Not investment advice.
Original publication: dabangasudan.org · 13 October 2026
This page summarises the institution's view and does not reflect the view of Talay Insight. No direct quotation is used.