OFAC sanctions parties from China, Russia and Singapore for connections with North Korea

The US Department of the Treasury’s Office of Foreign Assets Control (‘OFAC’) has imposed sanctions on Chinese, Russian and Singaporean companies and individuals for allegedly supporting North Korea (‘DPRK’)’s nuclear and ballistic missile programmes (23 August).

The move follows tough new sanctions imposed on DPRK by the UN Security Council in response to two tests of intercontinental ballistic missiles on 4 and 28 of July. Tensions have escalated between Washington and Pyongyang in recent weeks, with President Trump declaring that further provocation from Pyongyang would unleash ‘fire and fury that the world has never seen’, while Pyongyang responded with threats of a missile strike against US Pacific territory Guam.

The OFAC designations target ten companies and six individuals, which it claims:

• assist sanctioned individuals and entities;
• deal in DPRK’s energy trade;
• facilitate its exportation of workers;
• enable sanctioned DPRK entities to access the US and international financial systems.

Listed parties are subject to asset freezes and US nationals are not allowed to deal with them. They include three Chinese coal importers – Dandong Zhicheng Metallic Materials Co (‘Zhicheng’), JinHou International Holding Co, and Dandong Tianfu Trade Co; Russian company Gefest-M and its director, Ruben Kirakosyan; as well as two Singaporean companies alleged to be exporting oil to DPRK.

‘Treasury will continue to increase pressure on North Korea by targeting those who support the advancement of nuclear and ballistic missile programs, and isolating them from the American financial system,’ said Treasury Secretary Steven Mnuchin. ‘It is unacceptable for individuals and companies in China, Russia, and elsewhere to enable North Korea to generate income used to develop weapons of mass destruction and destabilize the region. We are taking actions consistent with UN sanctions to show that there are consequences for defying sanctions and providing support to North Korea, and to deter this activity in the future.’

A Chinese embassy spokesperson said: ‘We strongly urge the US to immediately correct its mistake, so as not to impact bilateral co-operation on relevant issues.’

OFAC’s press release can be found here:
https://www.treasury.gov/press-center/press-releases/Pages/sm0148.aspx

OFAC’s list of those designated can be found here:
https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20170822.aspx