US sanctions North Korea shipping firms, Chinese vessels for illicit coal exports

US Treasury’s Office of Foreign Assets Control (OFAC) on December 9 sanctioned at least six North Korean shipping firms, including four vessels that it identified facilitating illicit North Korean coal exports in violation of UNSC resolution. At least two entities were registered in the UK, and several others based out of China. The 15-member UNSC had issued nine major sanctions resolutions against North Korea for its nuclear and ballistic missile stockpile. Member states, additionally, held authority to interdict and inspect North Korean cargo within their territory, and subsequently seize and dispose of illicit shipments, according to UN Arms Control Associations. 

Based on a report by a UN panel of experts that accused Pyongyang of evading sanctions and importing oil, expanding coal exports, selling weaponry and hacking into foreign banks, conducting business with insurers and commodity traders, the US slapped an embargo on vessels that engaged in UNSCR-prohibited trade.

US Treasury condemned the People’s Republic of China (PRC) for procuring the North Korean coal, which ramped up funding of its nuclear missile and illegal uranium enrichment programs. The resolutions were put in place to pressurise North Korea to re-enter the nuclear Non-Proliferation Treaty (NPT), from which it had withdrawn in 2003. The trade embargo was imposed to get North Korea to return to the negotiation table for a joint statement on denuclearisation in the Six-Party Talks with South Korea, China, Japan, Russia, and the United States. 

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Funding 'illicit weapons' programs

"The DPRK continues to circumvent the UN prohibition on the exportation of coal, a key revenue generator that helps fund its weapons of mass destruction programs," Secretary Steven Mnuchin said. 

Under the Trump administration’s Executive Orders, six designated entities namely, China-based Weihai Huijiang Trade Ltd, Always Smooth Ltd, and Good Siblings, the latter two of which are registered in the UK were sanctioned. OFAC designated Hong Kong-based Co-HKG, Korea Daizin Trading Corp and hinh Cuong Co. operating in Vietnam were also sanctioned. US Coast Guard issued a global advisory to alert the maritime industry against engaging in deceptive shipping practices and evading sanctions.

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(Image Credit: Twitter/@USCG)