The US Treasury announced new sanctions targeting Chinese and Russian entities that help fund and facilitate North Korea’s nuclear and ballistic missile programs.
Specifically, the sanctions are aimed at 16 entities and individuals that assist „already designated persons who support North Korea’s nuclear and ballistic missile programs, deal in the North Korean energy trade, facilitate its exportation of workers, and enable sanctioned North Korean entities to access the US and international financial systems, “ the Treasury Department said.
„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, “ Treasury Secretary Steve Mnuchin said.
Chinese and Russian entities — including energy companies, coal and oil traders, labor exporters and facilitators of sanctions evasion — were listed as the primary targets of Tuesday’s sanctions.
„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, “ Mnuchin said. „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.“
But whether these sanctions can help slow Pyongyang’s rapidly developing nuclear and missile programs remains to be seen.
„Sanctions against companies and individuals that facilitate North Korea’s sanctions evasion is the best way to address Pyongyang’s nuclear weapons and missile programs, “ said Anthony Ruggiero, a former deputy director of the US Treasury Department and an expert in the use of targeted financial measures.
„New sanctions should be part of a robust sanctions campaign that includes engaging those who continue business with North Korea and present a choice: continue that business or work with the United States — they cannot do both, “ he told CNN.
Particularly when it comes to Russia, the sanctions are a warning, Ruggiero said.
„The Trump administration is sending a message to the Russian leadership to curb its activities with North Korea by targeting Russian companies and individuals for facilitating North Korea’s proliferation activities and purchase of commodities subject to US sanctions, “ he said. „This is the second action against Russia following the sanctions in early June for similar activities.“
However, Pyongyang has weathered years of sanctions, and attempts to cut off its revenue streams have proven to be similar to a game of international whack-a-mole.
„This is a regime that’s really good at finding new, creative illicit ways to earn hard currency, and sometimes that’s coming up with new activities and sometimes it’s a matter of shifting geographic locations of those activities, “ Sheena Greitens, a professor at the University of Missouri who has been studying North Korea’s illicit financial activities for the last 10 to 15 years, told CNN last month.
„If you wanted to try to pressure and contain North Korea’s ability to earn from these illicit activities, you’d have to also close off its ability to adapt, “ she said.
President Donald Trump has long called on China to put more pressure on North Korea — but ultimately, analysts say the US will have to convince China to not only target its own companies but to take comprehensive action that could disrupt the power balance in the region.
Beijing accounts for about 85% of Pyongyang’s imports, according to UN data. That’s a lifeline for the North Korean economy, one which prevents the US from really putting the squeeze on North Korea.
