WSJ on the holes in the sanctions regime against N Korea

Benjamin Katzeff Silberstein

WSJ:

The still-confidential report, prepared by a U.N. panel that monitors sanctions compliance, says North Korea has been caught selling arms to Syria, Yemen, Libya and other conflict zones around the world. The U.N. investigators found a massive rise in fuel imports through transfers involving Russian and Chinese ships. The report also cited numerous examples of coal shipments from North Korea to China that were structured to avoid surveillance.

The illegal trade is weakening U.S. efforts to pressure the regime to abandon its nuclear program, the panel says, citing intelligence reports.

“These violations render the latest U.N. sanctions ineffective by flouting the caps on the [North Korea’s] import of petroleum products and crude oil as well as the coal ban imposed in 2017,” the U.N. experts warned in the report, which was reviewed by The Wall Street Journal.

[…]

The U.N. panel’s findings are the latest indication that North Korea continues to engage in banned activities even as it engages in these diplomatic efforts.

The Wall Street Journal reported this week about a group of North Korean operatives in China using U.S. social media to pursue online schemes benefiting the regime. Also this week, the Journal reported North Korean ships had brought in 89 illicit cargoes of fuel in the first five months of the year obtained via ship to ship transfers primarily with Chinese or Russian counterparts.

[…]

The U.N. called out Chinese companies for buying tens of millions of dollars worth of North Korean iron, steel, textiles, food and other products, though Beijing disputed the figures. Citing official trade data, the U.N. said China bought more than $100 million in textiles from North Korea the last three months of 2017, $95 million more than Beijing reported directly to the panel. China disputes the U.N.-reported figures.

The U.N. panel also said it found more than 200 Chinese joint ventures with North Korea, collaboration banned last year by the Security Council. According to a U.S. Treasury Department advisory published in July, those companies conduct a vast array of business including software development, construction and aquaculture.

In Russia, which has also been criticized for what U.S. and U.N. officials say is lax sanctions enforcement, investigators found 39 joint ventures.

North Korean financial agents also continue to operate in Russia and China, the U.N. report said, despite the mandate to expel any bank representatives. Establishing and managing bank accounts allows North Korea to collect the illicit revenues generated overseas. When accounts were closed in the European Union, North Korea operatives simply transferred the funds to others in Asia, the U.N. report says.

Full article/source:

U.N. Cites New Evidence That North Korea Is Violating Sanctions

Ian Talley
Wall Street Journal
2018-09-15

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