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Peru: Guerrilla attacks

While the Shining Path guerrilla organisation no longer poses a nationwide terrorist threat in Peru, the group’s continued active presence in remote areas of Peru’s central and southern highlands continues to complicate the security environment for companies. Risks are highest in and around the Ene, Apurimac and Mantaro river valley (VRAEM), which straddles the regions of Cusco, Junin, Ayacucho and Huancavelica and is home to an estimated 300 combatants. The group has effectively abandoned its Maoist ideological roots and has issued public statements indicating that it is not opposed to private investment in the region, meaning that investors run little risk of being attacked on ideological grounds. However, Shining Path units engage in robbery, kidnapping and extortion throughout the VRAEM as a means of obtaining funds, supplies and equipment.

Shining Path’s continued access to substantial funds as a result of its involvement in extortion and the illegal drugs trade, combined with the authorities’ lack of a clear strategy aimed at defeating the group, mean that guerrilla activity will remain a threat to investors in this area of Peru for the foreseeable future.