Archive for the ‘International trade’ Category

UK publishes an updated list of sanctioned DPRK individuals/entities

Saturday, July 4th, 2015

You can see the list here (PDF). I have added this to my DPRK economic statistics page.

There is no similar list (as best I can tell) published by the US government (Please correct me if I am wrong). But links to tools created by the different offices in the US government can be found on my DPRK economic statistics page. I suspect a little research on with tools could be used to produce such a list. The closest I have seen to a complete list is here (PDF).

UPDATE: Josh Stanton offers this link.

NK News reports that the European Commission also tightened sanctions on the DPRK.

See Josh Stanton’s summary here.

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Mongolian mining firm to export coal from Rason

Friday, June 19th, 2015

According to the Reuters:

A Mongolian coal miner has signed a deal with a shipping company to deliver its coal via Russia to North Korea’s Rason port, part of the landlocked north Asian nation’s efforts to find new ways to reach overseas markets such as Japan and South Korea.

Miner Sharyn Gol signed a binding agreement on Friday with Mongol Sammok Logistics to ship its coal to Rason, where Mongolia already has an agreement with North Korea that gives its exporters preferential treatment at the port.

Mongolia currently ships the bulk of its mostly resource-based exports to China, leaving its economy dependent on its powerful southern neighbour and putting it at a disadvantage when it comes to negotiating prices.

“This is a pretty historic deal,” said James Passin, who controls Mongolian Stock Exchange-listed Sharyn Gol through the New York-based Firebird Mongolia Fund.

“This deal has to be viewed in the context of international relations and diplomacy,” he told Reuters on the sidelines of a signing ceremony.

Sharyn Gol currently has no sales agreements in place with any potential overseas buyers, Mr. Passin said, adding that he could not disclose any further details.

Mr. Passin declined to reveal any estimated delivery cost for shipments from the Sharyn Gol mine to Rason, but pointed to the preferential treatment at the port and the Russia exports that already go through there to South Korea.

South Korea has at least twice in the past year taken deliveries of Russian coal from Rason, with steelmaker POSCO one of the regular buyers, according to a company spokesman.

Namgar Algaa, executive director of the Mongolian Mining Association, said opening up new markets would allow Mongolian miners to manage the risk of slowing Chinese growth.

China’s weakening growth this year has meant its coal imports from Mongolia fell 6.9 percent across the first four months of the year to 5.2 million tonnes.

 

Read the full story here:
Mongolian miner signs deal to ship coal to North Korea
Reuters
2015-6-19

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Russian Railways transports 420,000 t of cargo to the Port of Rajin in QI 2015

Monday, June 1st, 2015

According to Port News:

In 2014, foreign-trade cargo transportation through the border crossing Khasan (Russian border)–Tumangan (North Korean border) increased 3.2 times over 2013. At the same time, the transportation of coal increased 24 times. In the first quarter of this year, this trend continued. The volume of transported goods increased several times—up to 432 000 t.

Such data were presented by President of Russian Railways Vladimir Yakunin at the OSJD Railway Summit in Seoul.

In 2014, 280 000 t was transported, of which 238 200 t was coal. In the first quarter of 2015, 408 000 t of coal was sent to the port of Rajin.

In total, according to Mr. Yakunin, it is planned to transport 1.5 million t of coal to the port of Rajin in 2015.

Recall that Russian Railways has implemented the reconstruction of the Khasan (Russia)–Rajin (North Korea) railway section and the construction of a cargo terminal in the port of Rajin. The cost of the project amounts to 10.6 billion rubles.

“In fact, the restoration of the site is a pilot project in the reconstruction of the Trans-Korean Railway, which in the future will provide communication between North and South Korea,” said Mr. Yakunin.

Since November 2014, four experimental coal transportation runs have been carried out through the port of Rajin to South Korea.

“The main task today is to ensure the involvement of enough traffic to complete the work of the railway and the terminal and provide a return on investments,” emphasized the head of Russian Railways.

The capacity of the Khassan–Rajin site and the terminal is 5 million t of cargo a year. In the future, when a favorable situation is created, the terminal may be employed for the transport of containers.

“In cooperation with South Korean companies POSCO, Korail, and Hyundai Merchant Marine, a due diligence investigation was conducted and we are discussing the possibility of creating a joint venture for the operation and development of infrastructure. This project is the first practical step in the development of trilateral cooperation on the development of Trans-Korean Railway. In this venture, we count on the support of South Korean businesses, the government, and the President of the Republic of Korea,” said Vladimir Yakunin.

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Russian Railways transports 420,000 t of cargo to the Port of Rajin in QI’15
Port News
2015-6-1

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North Koreans arrested for trade in rhino horn

Thursday, May 28th, 2015

According to the Daily NK:

One of the two North Koreans arrested on site for engaging in illegal trade of rhinoceros horns in Mozambique has been confirmed a Pyongyang diplomat, according to the Voice of America.

“Of the two arrested North Koreans, one was confirmed to be Park Chol Jun, a diplomat working at Pyongyang’s embassy in South Africa,” VOA reported, citing an official working at Seoul’s mission in the same country.

The two perpetrators, arrested on the 3rd this month, posted bail the following day and left the country for South Africa, the official said.

The North Korean mission there paid roughly 30,000 USD for their bail, the South Korean official said.

North Korean diplomats are said to often engage in illegal activities in other countries.

In March, a Pyongyang diplomat was deported from Bangladesh after attempting to smuggle in 27kg of gold, while in April, a couple from the North’s mission in Pakistan was caught selling alcohol on the streets of Karachi without a license.

“These kind of illegal activities have been around for a long time, because they stem from structural problems in operation,” Hong Sun Kyeong from the Committee for the Democratization of North Korea, who was also a former Pyongyang diplomat in Thailand, said. “Since the late 1970s, the North has not been giving its overseas missions money to operate. So not only do they have to make their own money, the state also makes it a rule that they have to wire back ‘loyalty foreign currency.’”

He added, “Back in the North, they do not recognize such illicit activities as being illegal, so even if officials are deported, they can just as easily be sent to missions in other countries.”

Here is coverage in the Joong Ang Ilbo.

Read the full story here:
Pyongyang diplomat caught in illegal trading of rhino horns
Daily NK
Kim Seong Hwan
2015-5-28

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DPRK selling Viagra in Bangladesh

Friday, May 15th, 2015

According to UPI:

A North Korean restaurant manager in Bangladesh was arrested in connection with illegal sales of Viagra and alcohol on Friday.

The supervisor of Pyongyang Restaurant in Dhaka, identified as a North Korean woman, had been secretly selling the impotence drug alongside other pharmaceuticals, reported South Korean news agency Yonhap.

Bangladesh’s Customs Intelligence Investigation Department was tipped off about the illegal sale of alcohol – and a raid on Friday uncovered 210 pills of Viagra, other medications, 94 cans of Foster’s beer and ten bottles of whisky, according to Bangladesh news site Prothom-Alo.

Pyongyang Restaurant in Dhaka is presided over by North Korea embassy staff, and an embassy employee reportedly tried to block the investigators.

Moinul Khan, head of the Customs Intelligence Investigation Department, said legal steps would be taken against the one North Korean national who was arrested.

Yonhap reported Bangladesh news network Jamuna TV was first to report the arrest, and said the North Korea-operated restaurant was raising funds through illegal operations.

Bangladesh’s population is mostly Muslim, with 83 percent of the country adhering to the Islamic faith. Alcohol cannot be sold without government permission.

This is not the first time North Korean envoys have been connected to illegal activity in Bangladesh.

In March North Korean diplomat Son Yung Nam tried to transport $1.4 million worth of gold bars, 170 in total.

Bangladeshi customs officials said the gold was most likely headed for a “local criminal racket” in order to raise cash for North Korea.

Read the full story here:
North Korean arrested in Bangladesh for sales of Viagra, alcohol
UPI
Elizabeth Shim
2015-5-15

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Chinese firms urged to remain confident in DPRK

Thursday, May 14th, 2015

According to Yonhap:

China has encouraged its companies doing business in North Korea to remain confident, despite strained political ties between the two neighbors.

The Chinese ambassador to North Korea, Li Jinjun, made the remarks at a meeting on Wednesday with a group of Chinese businessmen in North Korea, the Chinese Embassy in Pyongyang said in a statement.

Li told the Chinese businessmen that he has briefed North Korean officials on China’s ambitious Silk Road project aimed at reviving the ancient trade route between Asia and Europe.

Taking advantage of the Chinese Silk Road project, Li “encouraged Chinese companies to seize the opportunity to remain confident in their businesses in North Korea,” according to the statement.

Since taking up office in March, the Chinese ambassador has held a series of meetings with North Korean officials, including North Korean Vice Foreign Minister Ri Gil-song and Minister of Foreign Trade Ri Ryong-nam.

With a US$40 billion fund, the Silk Road project, known as “One Belt, One Road” in China, is designed to build ports, expressways, railways and other infrastructure with its neighboring countries.

China is North Korea’s economic lifeline and diplomatic backer, but political ties have strained in recent years, particularly after the North’s third nuclear test in early 2013.

Read the full story here:
Chinese firms urged to remain confident in N. Korea
Yonhap
2015-5-14

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Chongryon chief’s son arrested over suspected DPRK mushroom imports

Tuesday, May 12th, 2015

According to the Kyodo:

Police on Tuesday arrested three men, including the son of the head of the pro-Pyongyang group Chongryon, on suspicion of illegally importing a shipment of matsutake mushrooms from North Korea.

Masamichi Kyo, 50, whose father is Chongryon chief Ho Jong Man, runs a Tokyo-based company affiliated with the organization.

The investigation — carried out by Kyoto police and three other prefectural police forces — involved raids in March on sites related to Chongryon, also known as the General Association of Korean Residents in Japan.

The group has functioned for decades as North Korea’s de facto embassy in Japan in the absence of diplomatic ties between Tokyo and Pyongyang.

Kyo’s arrest could further complicate bilateral ties, given that the initial raid prompted North Korea to lash out, with Pyongyang declaring that talks with Japan would now be “difficult” to achieve.

Foreign Minister Fumio Kishida said Tuesday that police are “conducting their investigations based on law and evidence.”

A source close to Chongryon said Kyo is widely regarded as Ho’s bookkeeper, although he kept a low profile at Chongryon and only served in a senior post at one of the group’s local chapters in Tokyo.

The two other individuals arrested were Kim Yong Jak, 70, the president of the company Kyo works for, and Kazuhide Yamanaka, 63, a senior official at a related company.

The three are suspected of conspiring with two other men on Sept. 27, 2010, to import illegally via China some 1,800 kg of matsutake mushrooms from North Korea. The shipment was worth around ¥4.5 million.

“This is a false accusation,” Kyo said as he was escorted by investigators out of his condominium following his arrest Tuesday morning.

Officers quoted him as saying, “I will not cooperate as this is an unjustified arrest.”

The police suspect the mushroom shipment was part of North Korea’s bid to acquire hard currency, as Japan has maintained an embargo on imports from North Korea since October 2006. The measure is part of a package of sanctions by Tokyo on Pyongyang for its missile and nuclear tests.

The focus of the investigation is whether Kyo acted on the orders of the North Korean government.

Chongryon sources say Kyo served as an executive of the association’s Adachi branch, but he has not worked at the headquarters in Chiyoda Ward and was not a high-profile activist for the group.

That is why investigative sources say surveillance was “lax” on him, and Kyo was able to visit North Korea as his father’s proxy. A re-entry ban on Ho meant he stayed in Japan while his son traveled.

When the economic sanctions preventing Ho’s re-entry were partially lifted and Ho was able to visit North Korea last September, his wife and Kyo were already in Pyongyang when he arrived, investigative sources say.

Because investigators believe the mushroom deal was part of North Korea’s measures to secure foreign currency, they are now examining the transfer of funds between Chongryon and Pyongyang.

At around 6:40 a.m. Tuesday, about a dozen investigators carrying cardboard boxes entered Kyo’s condo in Adachi Ward.

About 30 minutes later, Kyo emerged, wearing a mask and a cap, looking down and surrounded by investigators.
Separately, Japan and North Korea are at loggerheads over stalled bilateral talks on Pyongyang’s abductions of Japanese nationals in the 1970s and 1980s.

Read the full story here:
Chongryon chief’s son arrested over suspected N. Korea mushroom imports
Kyodo
2015-5-12

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DPRK and Russia ink deal

Monday, April 27th, 2015

According to Xinhua:

The Democratic People’s Republic of Korea (DPRK) and Russia on Monday signed a protocol in Pyongyang, the official KCNA news agency reported.

The details of the protocol, which was signed after a meeting of the DPRK-Russia Inter-governmental Committee for Cooperation in Trade and Economy, Science and Technology, were not disclosed.

The two sides discussed issues of boosting cooperation in trade, economy, science and technology between the two countries, said the KCNA.

The protocol was signed by Ri Ryong Nam, the DPRK’s minister of external economic relations, and Alexandr Galushka, Russian minister of development of Far East.

Officials taking part in the meeting also included Russian ambassador to the DPRK, Alexandr Matsegora, and the Russian government economic delegation headed by Galushka.

On the same day, DPRK Vice Premier Ro Tu Chol met the Russian government economic delegation and had friendly talks with them.

Read the full story here:
DPRK, Russia ink protocol after inter-governmental meeting
Xinhua
2015-4-27

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North Korean workers in Russia

Monday, April 27th, 2015

According to NK News:

The amount of North Korean citizens officially working in the Russian Federation from the start of 2015 is now 20 percent higher year on year, information from Russian media stated.

A total 47,364 North Koreans are at present working in Russia since the year began, an April 22 report from business daily RBK stated.

By nationality, only Chinese and Turkish workers exceed them in terms of numbers, at 80,662 and 54,730 respectively, the report said.

Those three countries also comprise a total 80 percent of the foreign workers in Russia, the report noted.

While North Korean workers within Russia are known largely for working in logging camps throughout Siberia, they are also working in plastering, the RBK report stated.

Demand for North Koreans plasterers have also taken up the majority of Russian work permits in that skill, at 9,026 out of a total 14,783, the report added.

Read the full story here:
North Korean workers in Russia up 20%
NK News
Christopher Rivituso
2015-4-27

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DPRK – China Trade in 2015

Sunday, April 26th, 2015

Yonhap reports that DPRK – China trade has fallen in the first quarter of 2015:

Trade between North Korea and China, its economic lifeline, slipped 13.4 percent on-year in the first three months of this year amid frayed bilateral ties, data showed Sunday.

Bilateral trade volume fell to US$1.1 billion in the January-March period, compared with $1.27 billion for the same period last year, the Beijing unit of South’s Korea Trade and Investment Promotion Agency (KOTRA) said, citing Chinese customs data.

China is North Korea’s top economic benefactor, but its political ties with Pyongyang have been strained since the North’s third nuclear test in February 2013.

No crude oil was officially sent to North Korea from China for all of last year.

China’s shipments of crude oil to North Korea were also absent during the first quarter of this year.

South Korean diplomatic sources in Beijing, however, have cautioned against reading too much into the official Chinese trade figures because China has provided crude oil to North Korea in the form of grant aid in the past and such shipments were not recorded on paper.

Read the full story here:
N. Korea’s trade with China dips 13.4 pct in Q1
Yonhap
2015-4-26

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