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US Sanctions 12 Over North Korea Weapons Programs


People sit in front of the TV screen showing a news program reporting about North Korea's missile firing, at Seoul Train Station in Seoul, South Korea, May 29, 2017.

The United States on Thursday blacklisted nine companies and government institutions, including two Russian firms, and three people for their support of North Korea's weapons programs.

The announcement from the U.S. Treasury came as diplomats said the U.N. Security Council will vote Friday on a U.S. and Chinese proposal to blacklist more North Korean individuals and entities over the country's repeated ballistic missile launches.

The draft resolution, seen by Reuters, would sanction four entities, including the Koryo Bank and Strategic Rocket Force of the Korean People’s Army, and 14 people, including Cho Il U, who is believed to head North Korea’s overseas spying operations.

FILE - Sergei Ryabkov, deputy foreign minister of the Russian Federation, at United Nations headquarters, May 4, 2010.
FILE - Sergei Ryabkov, deputy foreign minister of the Russian Federation, at United Nations headquarters, May 4, 2010.

Russia objects

On Thursday, Russia's Interfax news agency quoted Russian Deputy Foreign Minister Sergei Ryabkov as saying Moscow was puzzled and alarmed by the U.S. decision to sanction a Russian citizen and firms over alleged connections to North Korea.

He said Russia is preparing retaliatory measures, and that the sanctions would not help efforts to restore relations between Moscow and Washington, RIA news agency reported.

The United States has struggled to slow North Korea's nuclear and missile programs, which have become a security priority given Pyongyang's vow to develop a nuclear-tipped missile capable of hitting the U.S. mainland.

Washington has worked to step up both unilateral and international sanctions in an effort to cut off funds and supplies to the reclusive state.

Those sanctioned

The measures announced by the U.S. Treasury on Thursday sanctioned Ardis-Bearings Llc, which it said is based in Moscow, and its director, Igor Aleksandrovich Michurin, for acting as a supplier to a North Korean trading company involved in the country's missile and weapons of mass destruction programs.

Another Russian firm, Independent Petroleum Company, and a subsidiary were blacklisted for signing a contract to provide oil to North Korea and shipping over $1 million worth of petroleum products to North Korea, Treasury said.

The head of Independent Petroleum, Eduard Khudainatov, was chief executive of Russia's largest oil producer Rosneft, 2010 to 2012, before Russian President Vladimir Putin appointed his close aide, Igor Sechin, to replace him.

Khudainatov then became a Rosneft vice president and subsequently left Rosneft and took over the much smaller IPC, which produces about 40,000 barrels of oil per day, compared with more than 4 million barrels a day at Rosneft. IPC was set up in December 2012, according to filings.

The Treasury also sanctioned a major North Korean zinc company, the Korea Zinc Industrial Group, and the Korea Computer Center, which it said is a state-run information technology research center that generates foreign currency for the North Korean government through programming and software development.

The center is believed to have offices in Germany, China, Syria, India and the Middle East, Treasury said.

A North Korean intelligence official, Kim Su-Kwang, was also sanctioned. The Treasury said he had worked undercover at a United Nations organization in Europe.

FILE - Trucks move across the bridge linking North Korea with the Chinese border city of Dandong, March 3, 2016. China has banned imports of gold and rare earths from North Korea as well as exports to the country of jet fuel and other oil products.
FILE - Trucks move across the bridge linking North Korea with the Chinese border city of Dandong, March 3, 2016. China has banned imports of gold and rare earths from North Korea as well as exports to the country of jet fuel and other oil products.

Funds frozen

The steps freeze any funds the individuals or companies may have in the United States, and bar Americans from dealing with them.

The United States has been negotiating with China for five weeks on possible new U.N. sanctions, and the 15-member U.N. Security Council body could vote on a draft resolution to add names to its targeted sanctions list as early as Friday, diplomats said.

The Trump administration has been pressing Beijing to rein in North Korea, warning that all options are on the table if Pyongyang persists with its nuclear and missile development.

Traditionally, the United States has negotiated new sanctions with China, North Korea's neighbor and only major ally, before involving the other 13 council members. Russian support would be needed for the approval of a new resolution.

UN sanctions may be next

Any new names added to the U.N. blacklist would be subjected to a global asset freeze and travel ban.

The Security Council first imposed sanctions on Pyongyang in 2006 over its ballistic missile and nuclear programs and has ratcheted up the measures in response to five nuclear tests and two long-range missile launches.

North Korea is threatening a sixth nuclear test and has conducted repeated missile tests this year.

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