The British intelligence said on Monday that the Russian private military organization, Wagner Group, has played a central role in the recent fighting in Ukraine, including the capture of the towns of Popasna and Lysyschansk in Luhansk, but has suffered heavy losses.

“Wagner has almost certainly played a central role in recent fighting, including the capture of Popasna and Lysyschansk. This fighting has inflicted heavy casualties on the group,” said the agency.

The UK intelligence suggested that Wagner head, Yevgeniy Prigozhin, has recently been made a Hero of the Russian Federation for Wagner’s performance in Luhansk.

“at a time when a number of very senior Russian military commanders are being replaced, is likely to exacerbate grievances between the military and Wagner. It is also likely to negatively impact Russian military morale.”

The agency reported that Wagner was lowering recruitment standards, hiring convicts and formerly blacklisted individuals.

“Very limited training is made available to new recruits.”

The Kremlin uses the private paramilitary organization Wagner in various hotspots around the world.

Its owner is considered to be a businessman close to the Russian president, Yevgeniy Prigozhin, who is called Putin's "personal chef".

 He is on the list of those sanctioned by the US and the EU.