Putin-Kim summit sends message to U.S. but sanctions relief elusive for North Korea

FILE PHOTO: A combination of file photos shows North Korean leader Kim Jong Un attending a wreath laying ceremony at Ho Chi Minh Mausoleum in Hanoi, Vietnam March 2, 2019 and Russia's President Vladimir Putin looking during a joint news conference with South African President Jacob Zuma after their meeting at the Bocharov Ruchei residence in the Black Sea resort of Sochi, Krasnodar region, Russia, May 16, 2013. REUTERS/Jorge Silva/Pool/Maxim Shipenkov/Pool/File Photo

By Josh Smith

SEOUL (Reuters) – North Korean leader Kim Jong Un is set to meet Russian President Vladimir Putin for the first time this week at a symbolic summit hoping to project himself as a serious world player but likely to come away without the relief he seeks from crushing sanctions.

After his second summit with U.S. President Donald Trump ended without an agreement two months ago, Kim’s meeting with Putin serves as a reminder to Washington that he has other options in the region backing his leadership.

But while Kim is likely to seek more assistance from one of his country’s two main backers, Russia will be limited in what it can provide and the summit will focus more on demonstrating camaraderie than new investment or aid, analysts said.

“When Kim meets Putin, he is going to ask for economic assistance and unilateral sanctions relaxation. Moscow is unlikely to grant his wishes,” said Artyom Lukin, a professor at Far Eastern Federal University in Vladivostok.

That school’s campus is seen to be the summit venue, according to South Korean media which reported the presence of Kim’s top aides there making preparations for the event.

“Being a veto-holding U.N. Security Council member, Moscow can hardly afford to undermine its authority even for the sake of friendship with Kim,” Lukin said.

SANCTIONS RELIEF

While Russia says it fully enforces the sanctions that it voted to impose, it has joined China in calling for loosening punishment for North Korea in recognition of steps taken in limiting its weapons testing.

“Steps by the DPRK towards gradual disarmament should be followed by the easing of sanctions,” Russian Foreign Minister Sergei Lavrov said at a Security Council meeting late last year, using the initials of the North’s official name, the Democratic People’s Republic of Korea.

Washington has accused Russia of “cheating” on sanctions and said it has evidence of “consistent and wide-ranging Russian violations”.

In February, Reuters reported a Russian tanker violated international trade sanctions by transferring fuel to a North Korean vessel at sea at least four times between October 2017 and May 2018.

One Russian lawmaker told Interfax news agency last week that North Korea had asked Moscow to allow its laborers to continue to work in Russia despite sanctions requiring their expulsion by the end of this year.

“One particularly sore area for Kim is the issue of North Korean laborers working in Russia,” said Anthony Rinna, a specialist in Korea-Russia relations at Sino-NK, a website that analyses the region.

“Kim will probably be seeking some wiggle-room from Russia, although Moscow will be hard-pressed to accommodate Kim given its desire to portray a responsible image in the world.”

The United States has said it believed Pyongyang was earning more than $500 million a year from nearly 100,000 workers abroad, including 30,000 in Russia.

According to unpublished reports by Moscow to the United Nations Security Council, Russia sent home nearly two-thirds of its North Korean workers during 2018.

The report, reviewed by Reuters, said in 2018 the number of North Koreans with work permits in Russia fell to about 11,500.

LONG TIES

Russia-North Korea relations withered after the Soviet demise, with the loss of support from Moscow often cited as one factor that lead to a 1990s famine that killed hundreds of thousands of North Koreans.

Kim Jong Un’s father, Kim Jong Il, worked to renew ties after Putin first became president in 1999. He visited Russia three times before his sudden death in 2011.

Russia could agreed on some limited projects like a vehicle bridge connecting the two countries across the Tumangan River, or provide more humanitarian aid, Lukin said.

Earlier this year, Russia sent more than 2,000 tons of wheat to North Korea through the World Food Program. Russian lawmakers have suggested Moscow could send as much as 50,000 tons of wheat to North Korea.

According to the United Nations, Russia has continued to sell significant amounts of oil to North Korea, though still officially under sanctions caps.

North Korea’s state media said in March officials met in Moscow to sign an agreement “to boost high-level contact and exchange in the political field (and) actively promote cooperation in the fields of economy and humanitarianism.”

While Moscow is unlikely to risk its authority at the United Nations by overtly breaching sanctions, Putin could promise not to support any additional sanctions, Lukin said.

“Kim can expect a friendly reception here and probably some chance of getting political and economic support from Putin.”

(Reporting by Josh Smith, additional reporting by Vladimir Soldatkin in Moscow.; Editing by Jack Kim and Lincoln Feast.)

North Korea’s Kim Jong Un to meet Putin in Russia on Thursday: Kremlin

A combination of file photos shows North Korean leader Kim Jong Un attending a wreath laying ceremony at Ho Chi Minh Mausoleum in Hanoi, Vietnam March 2, 2019 and Russia's President Vladimir Putin looking on during a joint news conference with South African President Jacob Zuma after their meeting at the Bocharov Ruchei residence in the Black Sea resort of Sochi, Krasnodar region, Russia, May 16, 2013. REUTERS/Jorge Silva/Pool/Maxim Shipenkov/Pool

By Vladimir Soldatkin and Maria Vasilyeva

MOSCOW/VLADIVOSTOK, Russia (Reuters) – North Korean leader Kim Jong Un and Russian President Vladimir Putin will meet on Thursday in the Russian Pacific port of Vladivostok to discuss the international standoff over Pyongyang’s nuclear program, a Kremlin official said.

The visit is part of Kim’s effort to build foreign support after the breakdown of a second U.S.-North Korea summit in Vietnam in February meant no relief on sanctions for North Korea, analysts said.

The summit will be the first between Putin and the North Korean leader and the nuclear row, and how to resolve it, would be the main item on the agenda, Kremlin aide Yuri Ushakov told reporters.

“In the last few months the situation around the peninsula has stabilized somewhat, thanks in large part to North Korea’s initiatives of stopping rocket testing and closing its nuclear test site,” Ushakov said. “Russia intends to help in any way possible to cement that positive trend.”

The North’s Korean Central News Agency (KCNA) said on Tuesday the visit would happen soon, but did not elaborate on a time or location.

Kim’s chief aide, Kim Chang Son, was seen in Vladivostok on Sunday, according to South Korea’s Yonhap news agency.

Vladivostok is the closest major Russian city to the short stretch of border that Russia and North Korea share, and can be reached from the border via train, Kim’s preferred mode of international transport.

Russia has for years been involved in efforts to persuade North Korea to give up its nuclear program. It was involved in so-called six party talks – along with the two Koreas, Japan, the United States and China – that were last held in 2009.

South Korea’s foreign ministry said it understood the agenda would include Russia-North Korea relations, denuclearisation, and regional cooperation.

“Russia shares our viewpoints such as the achievement of complete denuclearisation on the Korean Peninsula and the settlement of permanent peace,” foreign ministry spokesman Kim In-chul said in Seoul.

“I hope that the summit will be an opportunity that contributes to positive progress.”

RUSSIAN PRESTIGE

After the failed Hanoi summit with U.S. President Donald Trump, Kim is probably looking to prove that he is still sought after by world leaders, and that he has more options, said Artyom Lukin, a professor at Far Eastern Federal University.

Kim did not want to look too dependent on Washington, Beijing and Seoul, he said.

“As for Russia, the Putin-Kim summit will reaffirm Moscow’s place as a major player on the Korean Peninsula. This meeting is important for Russian international prestige.”

Putin previously held a summit in Russia with Kim Jong Un’s father and predecessor as North Korean leader, Kim Jong Il, in 2002. Kim Jong Il visited Russia again in 2011, when he was hosted by Dmitry Medvedev, the Putin lieutenant who at the time was serving as Russian president.

Online media which monitor North Korea reported that the venue for the summit would be the Far Eastern Federal University, on an island that is connected to the mainland part of Vladivostok by a bridge.

The bridge was built in time for the 2012 Asia-Pacific Cooperation Summit, which took place on the same site that now houses the university.

At the university campus on Tuesday, the sports complex had been closed and workers were seen bringing in pieces of furniture, a Reuters TV crew at the site reported. A white tent had been erected next to the sports complex.

At the entrance to the campus, security guards were stopping vehicles as they drove in, and searching them. There were no signs of preparation at Vladivostok railway station.

But at Khasan, a Russian settlement where the train line crosses the border, the state flags of Russia and North Korea were fluttering from the station building on Tuesday. A set of mobile steps for alighting from a train was positioned on the platform edge.

(Additional reporting by Joyce Lee and Josh Smith in SEOUL; Maxim Rodionov in MOSCOW; Writing by Christian Lowe; Editing by Angus MacSwan)

North Korea calls for Pompeo to be dropped from talks; tests tactical weapon

By Joyce Lee and Hyonhee Shin

SEOUL (Reuters) – North Korea said on Thursday it no longer wanted to deal with U.S. Secretary of State Mike Pompeo and said he should be replaced in talks by someone more mature, hours after it announced its first weapons test since nuclear talks broke down.

The North’s official KCNA news agency quoted senior foreign ministry official Kwon Jong Gun as warning that no one could predict the situation on the Korean peninsula if the United States did not abandon the “root cause” that compelled North Korea to develop nuclear weapons.

The statement came shortly after North Korea announced that leader Kim Jong Un had overseen the testing of a new tactical guided weapon, which KCNA said has a “peculiar mode of guiding flight” and “a powerful warhead.”

It was the North’s first weapon test since talks in Vietnam between Kim and U.S. President Donald Trump in late February broke down over conflicting demands by North Korea for sanctions relief and by the United States for North Korea to abandon its nuclear program.

KCNA gave no details on the weapon that was tested on Wednesday but “tactical” implied a short-range weapon rather than the long-range ballistic missiles that have been seen as a threat to the United States.

KCNA quoted Kwon, who is in charge of U.S. affairs, as saying the Vietnam summit, the second between the two leaders, showed that talks could go wrong “whenever Pompeo pokes his nose in.”

“I am afraid that, if Pompeo engages in the talks again, the table will be lousy once again and the talks will become entangled,” Kwon said.

“Therefore, even in the case of possible resumption of the dialogue with the United States, I wish our dialogue counterpart would be not Pompeo but other person who is more careful and mature in communicating with us.”

A spokeswoman for the State Department said it was aware of the report about Pompeo and added: “The United States remains ready to engage North Korea in a constructive negotiation.”

Kwon did not elaborate on why North Korea felt compelled to develop nuclear weapons, but North Korea has long spoken of the need to defend itself from what it sees as U.S. aggression.

Kim said last week said the breakdown in talks risked reviving tensions and he gave a year-end deadline for the United States to change its attitude.

Despite the failure of the Vietnam summit, Trump has stressed his good relationship with Kim.

Kwon also said the two leaders were on good terms, even as he castigated Pompeo for “fabricated” stories as part of a “publicity stunt.” He did not elaborate.

Kwon said Pompeo had made “reckless remarks hurting the dignity of our supreme leadership,” apparently referring to him agreeing to the characterization of Kim as a “tyrant” at a U.S. congressional hearing last week.

‘USEFUL REMINDER’

Earlier, Kim Dong-yub, a military expert at Kyungnam University’s Institute of Far Eastern Studies in Seoul, said the newly tested weapon was likely a short-range cruise missile that could be launched from the ground, sea and air.

Kim oversaw the test of an unidentified tactical weapon in November.

Experts said in November Kim wanted to shift the mainstay of the North’s conventional military power from a nearly 1.3 million-strong army to high-tech weapons.

The young leader said last April that he would stop nuclear tests and launches of intercontinental ballistic missiles because the nuclear capabilities of North Korea, which has tested nuclear devices six times, had been verified.

“This does serve as a useful reminder of one critical fact: Chairman Kim Jong Un never promised to stop testing all weapons in his military arsenal, just nuclear weapons and ICBMs that have the potential to hit the U.S. homeland,” said Harry Kazianis of the Washington-based Center for the National Interest.

A U.S. official said that, according initial information, U.S. forces did not detect a missile launch from North Korea. Checks were underway, said the official.

Referring to the test, a White House official said: “We are aware of the report and have no further comment.”

South Korea’s presidential Blue House declined to comment on the test, referring questions to the defense ministry. It said it was analyzing the nature of the weapon and North Korea’s intentions.

Kim’s visit to the testing site came after he visited the North Korean Air and Anti-aircraft Force on Tuesday, according to KCNA.

Kyungnam University’s Kim Dong-yub said the latest test appeared to partly be a message to the United States that North Korea would not bow to sanctions.

“It’s also an internal message to the North Korean people and to the military” to instill trust in their own security by reinforcing conventional weapons, he said.

Satellite images from last week showed movement at Yongbyon, North Korea’s main nuclear site, that could be associated with the reprocessing of radioactive material into bomb fuel, the Center for Strategic and International Studies in the United States said on Tuesday.

U.S. national security adviser John Bolton said in a Bloomberg News interview on Wednesday the United States needed to see “a real indication from North Korea that they’ve made the strategic decision to give up nuclear weapons” before a third summit between Trump and Kim.

(Reporting by Joyce Lee, Josh Smith and Hyonhee Shin; Additional reporting by David Brunnstrom, Idrees Ali, Jeff Mason and Phillip Stewart in WASHINGTON; Editing by Sandra Maler, Paul Tait, Robert Birsel and Jonathan Oatis)

Satellite images may show reprocessing activity at North Korea nuclear site: U.S. researchers

A view of what researchers of Beyond Parallel, a CSIS project, describe as specialized rail cars at the Yongbyon Nuclear Research Center in North Pyongan Province, North Korea, in this commercial satellite image taken April 12, 2019 and released April 16, 2019. CSIS/Beyond Parallel/DigitalGlobe 2019 via REUTERS

By David Brunnstrom

WASHINGTON (Reuters) – Satellite images from last week show movement at North Korea’s main nuclear site that could be associated with the reprocessing of radioactive material into bomb fuel, a U.S. think tank said on Tuesday.

Any new reprocessing activity would underscore the failure of a second summit between U.S. President Donald Trump and North Korean leader Kim Jong Un in Hanoi in late February to make progress toward North Korea’s denuclearization.

Washington’s Center for Strategic and International Studies said in a report that satellite imagery of North Korea’s Yongbyon nuclear site from April 12 showed five specialized railcars near its Uranium Enrichment Facility and Radiochemistry Laboratory.

It said their movement could indicate the transfer of radioactive material.

“In the past, these specialized railcars appear to have been associated with the movement of radioactive material or reprocessing campaigns.” the report said. “The current activity, along with their configurations, does not rule out their possible involvement in such activity, either before or after a reprocessing campaign.”

The U.S. State Department declined to comment on intelligence matters, but a source familiar with U.S. government assessments said that while U.S. experts thought the movements could possibly be related to reprocessing, they were doubtful it was significant nuclear activity.

Jenny Town, a North Korea expert at the Stimson Center think tank, said that if reprocessing was taking place, it would be a significant given U.S.-North Korean talks in the past year and the failure to reach an agreement on the future of Yongbyon in Hanoi.

“Because there wasn’t an agreement with North Korea on Yongbyon, it would be interesting timing if they were to have started something so quickly after Hanoi,” she said.

Trump has met Kim twice in the past year to try to persuade him to abandon a nuclear weapons program that threatens the United States, but progress so far has been scant.

The Hanoi talks collapsed after Trump proposed a “big deal” in which sanctions on North Korea would be lifted if it handed over all its nuclear weapons and fissile material to the United States. He rejected partial denuclearization steps offered by Kim, which included an offer to dismantle Yongbyon.

Although Kim has maintained a freeze in missile and nuclear tests since 2017, U.S. officials say North Korea has continued to produce fissile material that can be processed for use in bombs.

Last month, a senior North Korean official warned that Kim might rethink the test freeze unless Washington made concessions.

Last week, Kim said the Hanoi breakdown raised the risks of reviving tensions, adding that he was only interested in meeting Trump again if the United States came with the right attitude.

Kim said he would wait “till the end of this year” for the United States to decide to be more flexible. On Monday, Trump and his Secretary of State Mike Pompeo brushed aside this demand with Pompeo saying Kim should keep his promise to give up his nuclear weapons before then.

Town said any new reprocessing work at Yongbyon would emphasize the importance of the facility in North Korea’s nuclear program.

“It would underscore that it is an active facility that does increase North Korea’s fissile material stocks to increase its arsenal.”

A study by Stanford University’s Center for International Security and Cooperation released ahead of the Hanoi summit said North Korea had continued to produce bomb fuel in 2018 and may have produced enough in the past year to add as many as seven nuclear weapons to its arsenal.

Experts have estimated the size of North Korea’s nuclear arsenal at anywhere between 20 and 60 warheads.

(Reporting by David Brunnstrom and Mark Hosenball; Editing by Tom Brown and Grant McCool)

‘A target on the back’: North Korea embassy raid thrusts shadowy group into the spotlight

FILE PHOTO: A Spanish National Police car is seen outside the North Korea's embassy in Madrid, Spain February 28, 2019. REUTERS/Sergio Perez/File Photo

By Josh Smith and Hyonhee Shin

SEOUL (Reuters) – A shadowy group seeking to overthrow North Korean leader Kim Jong Un has been thrust into the international spotlight after a Spanish court investigating a break-in at North Korea’s embassy in Madrid named apparent members as suspects.

Cheollima Civil Defense, also known as Free Joseon, first went public in 2017, when it said it was protecting the family of Kim Jong Un’s half brother Kim Jong Nam, who was murdered in a Malaysian airport.

Spanish authorities unsealed court documents on Tuesday accusing at least 10 individuals of storming into the embassy, restraining and beating some staff members and holding them hostage for hours before fleeing with stolen computers and hard drives. Such an action would be one of the most militant operations ever carried out by activists opposed to North Korea’s government.

“Parties seeking to ‘out’ those in Madrid have painted a target on the backs of those seeking only to protect others,” Cheollima Civil Defense said in a website post, apparently acknowledging for the first time its involvement in the raid. “They have chosen to side with Pyongyang’s criminal, totalitarian rulers over their victims.”

It disputed police allegations that weapons or violence were used in the break-in.

Lee Wolosky, an American attorney who represents Free Joseon, said in a statement that the Spanish court “purported to reach conclusions without any input from representatives” of the group.

“There are a number of statements attributed to the judge in media reports that do not accurately reflect what happened in Madrid,” he continued, without elaborating. “It was, in any event, highly irresponsible to disclose publicly the names of people who are working in opposition to a brutal regime that routinely and summarily executes its enemies.”

Of the 10 suspects, the documents listed the names and birth dates of seven, including citizens of Mexico, the United States, and South Korea. All but one are under 30 years old.

The identification of at least some of the individuals in the group may have undermined their cause and perhaps endangered their lives, analysts and activists said.

“It was too risky,” said one South Korean human rights activist who previously worked with one of the suspects. “Now that their identities are known, they won’t be able to carry out activities as before.”

NORTH KOREA ACTIVIST

The Mexican national named by Spanish authorities as one of the embassy raid’s leaders, Adrian Hong, is a longtime activist who helped found the refugee aid organization Liberty in North Korea (LiNK), and later led an organization preparing for an “imminent, dramatic change” in the country, analysts said.

Spanish court documents said Hong played a leading role in the break-in, and that after fleeing to the United States he contacted the FBI to offer information that had been stolen.

Hong could not be reached for immediate comment.

Hong was among several LiNK activists who were arrested and deported from China in late 2006 as they were trying to help a party of North Korean refugees escape.

In a statement on Tuesday, LiNK said Hong had not been involved in any way with the group for more than 10 years and LiNK had no information on his current activities.

Hong told a newspaper in the United Arab Emirates in 2011 that the Arab Spring uprisings then unfolding were “a dress rehearsal for North Korea”.

Kang Cheol-hwan, a defector and founder of the North Korea Strategy Centre in Seoul, said Hong went so far as to travel to Libya to research the aftermath of Muammar Gaddafi’s ouster.

FREE JOSEON

Cheollima Civil Defense takes its name from a winged horse commonly featured in East Asian mythology. Free Joseon, meanwhile, references the last Korean dynasty, and a name that North Korea still often uses to refer to itself.

On its website, the group used soaring language to declare itself the “a provisional government” of Free Joseon as “the sole legitimate representative of the Korean people of the north.”

The website also began to sell “post-liberation blockchain visas” that can be bought with cryptocurrency, and on March 11 it claimed responsibility for defacing the North Korean embassy in Kuala Lumpur.

North Korea has not publicly commented on the Madrid break-in, nor filed a complaint with Spanish police.

The group’s brazen actions led some to speculate that there could be serious dissent against Kim Jong Un taking shape. But other analysts were more skeptical, and say there are lingering questions over possible ties to foreign intelligence agencies.

“I’m still inclined to believe there was some professional involvement because taking over a foreign mission is not an easy operation,” said Korea Risk Group director Andrei Lankov.

“They took computers and hard disks, but if you don’t have highly specialized capabilities for breaking the codes, it’s probably not going to be useful to anyone but major intelligence agencies.”

Cheollima Civil Defense said on Tuesday that no governments were involved or were aware of the embassy operation beforehand. It said it had shared “certain information of enormous potential value” with the FBI at the agency’s request, but that agreements of confidentiality “appear to have been broken”.

The U.S. State department said on Tuesday the U.S. government was not involved in the raid.

(Reporting by Josh Smith and Hyonhee Shin; Jonathan Landay contributed from Washington; Editing by Alex Richardson and Jonathan Oatis)

Trump says he is withdrawing earlier North Korea-related sanctions

U.S. President Donald Trump and North Korean leader Kim Jong Un shake hands before their one-on-one chat during the second U.S.-North Korea summit at the Metropole Hotel in Hanoi, Vietnam February 27, 2019. REUTERS/Leah Millis

WASHINGTON (Reuters) – U.S. President Donald Trump on Friday said he was ordering the withdrawal of recently announced North Korea-related sanctions imposed by the U.S. Treasury Department.

“It was announced today by the U.S. Treasury that additional large-scale Sanctions would be added to those already existing Sanctions on North Korea,” Trump said on Twitter. “I have today ordered the withdrawal of those additional Sanctions!”

It was not immediately clear what sanctions Trump was referring to. There were no new U.S. sanctions on North Korea announced on Friday but on Thursday the United States blacklisted two Chinese shipping companies that it said helped North Korea evade sanctions over its nuclear weapons program.

White House spokeswoman Sarah Sanders did not specify which sanctions Trump spoke of but said: “President Trump likes Chairman Kim (Jong Un) and he doesn’t think these sanctions will be necessary.”

The sanctions on the Chinese shippers were the first since the second U.S.-North Korea summit broke down last month. Hours after the sanctions announcement, North Korea on Friday pulled out of a liaison office with the South, a major setback for Seoul.

North Korea said it was quitting the joint liaison office set up in September in the border city of Kaesong after a historic summit between leader Kim Jong Un and South Korea’s President Moon Jae-in early last year.

(Reporting by Susan Heavey; writing by David Alexander; editing by Tim Ahmann and Bill Trott)

North Korea quits liaison office in setback for South after new U.S. sanctions

FILE PHOTO: South Korean President Moon Jae-in and North Korean leader Kim Jong Un wave during a car parade in Pyongyang, North Korea, September 18, 2018. Pyeongyang Press Corps/Pool via REUTERS/File Photo

By Hyonhee Shin and David Brunnstrom

SEOUL/WASHINGTON (Reuters) – North Korea on Friday pulled out of a liaison office with the South, in a major setback for Seoul, just hours after the United States imposed the first new sanctions on the North since the second U.S.-North Korea summit broke down last month.

North Korea said it was quitting the joint liaison office set up in September in the border city of Kaesong after a historic summit between leader Kim Jong Un and South Korea’s President Moon Jae-in early last year.

“The North’s side pulled out after conveying to us that they are doing so on the instructions from a higher level, during a liaison officials’ contact this morning,” South Korea’s Vice Unification Minister Chun Hae-sung told a briefing.

South Korea regrets the decision and urged a swift normalisation of the arrangement, Chun said, adding the South would continue to staff the office, set up as a regular channel of communication to ease hostility between the rivals, which technically remain at war.

The move came after the United States on Thursday blacklisted two Chinese shipping companies it says helped North Korea evade sanctions over its nuclear program and cited 67 vessels it said engaged in illicit trade helping the North.

It was the first such step since a second meeting between President Donald Trump and North Korean leader Kim Jong Un in Hanoi broke down over conflicting demands by the North for relief from sanctions and from the United States for Pyongyang to give up its nuclear weapons.

The North’s withdrawal from the office was another blow to Moon, who has seen his standing as a mediator between Pyongyang and Washington deteriorate and divisions grow within his government over how to break the impasse.

Moon’s administration had touted the office as a major feat resulting from his own summit with Kim last year despite U.S. concerns about possible loosening of sanctions.

The South’s Chun said he would not directly link the North’s move to the failed Hanoi summit. But experts saw a pattern in the North lashing out against the South when its crucial strategic position with Washington is in jeopardy.

“The North sees its nuclear issue and ties with the United States as a matter of greater strategic importance, so when they try to assert its position, they sacrifice the ties with the South, which is considered inferior,” said Shin Beom-chul of the Asan Institute for Policy Studies in Seoul.

Moon’s office reacted by holding an urgent meeting, headed by his national security adviser, to discuss the withdrawal.

The won weakened about 0.4 percent against the dollar in non-deliverable forward (NDF) trade after the news.

NEW SANCTIONS

The U.S. Treasury Department identified two Chinese firms for new sanctions – Dalian Haibo International Freight Co Ltd and Liaoning Danxing International Forwarding Co Ltd – which had helped the North evade U.S. and international sanctions, it said.

It also cited 67 vessels for engaging in illicit transfers of refined petroleum with North Korean tankers or facilitating the export of the North’s coal.

Reuters was unable to locate contact details for either of the Chinese companies to seek comment.

The U.S. sanctions prohibit U.S. dealings with the designated companies and freezes any assets they have in the United States.

“The United States and our like-minded partners remain committed to achieving the final, fully verified denuclearization of North Korea and believe that the full implementation of North Korea-related U.N. Security Council resolutions is crucial to a successful outcome,” Treasury Secretary Steven Mnuchin said in a statement.

The latest sanctions showed there was some “leakage” in North Korea sanctions enforcement by China, but it was mostly abiding by U.N. resolutions, a senior U.S. official told reporters on condition of anonymity.

While declining to say whether Washington was trying to send a post-summit message to Pyongyang, the official said Trump “has made clear that the door is wide open to continuing the dialogue with North Korea.”

LIMBO

U.S.-North Korean engagement has appeared to be in limbo since the Feb. 27-28 summit, despite U.S. Secretary of State Mike Pompeo saying on March 4 he was hopeful he could send a team to North Korea “in the next couple of weeks.”

North Korea has warned it is considering suspending talks and may rethink a freeze on missile and nuclear tests, in place since 2017, unless Washington makes concessions.

Activity was detected at the North’s main rocket test facility around the time of the failed summit, fueling concern that Pyongyang may be about to resume weapons development to ratchet up pressure on Washington.

On Monday, two senior U.S. senators called for the Trump administration to correct a slowing pace of American sanctions designations on North Korea, saying such actions had seen a marked decline in the past year of U.S. diplomatic engagement with Pyongyang.

They pointed to a recent U.N. report that North Korea continued to defy U.N. sanctions with an increase in smuggling of petroleum products and coal and violation of bans on arms sales.

A U.N. sanctions panel said in the report Liaoning Danxing was suspected of illicitly shipping Mercedes-Benz limousines to North Korea. Last July, the Netherlands seized a cargo of Belarusian vodka, also banned as luxury goods, en route to North Korea via the company, it said.

(Reporting by David Brunnstrom, Matt Spetalnick and Doina Chiacu in Washington and Hyonhee Shin and Joyce Lee in Seoul; Additional reporting by Choonsik Yoo in Seoul and Gao Liangping and Ben Blanchard in Beijing; Editing by Jack Kim and Clarence Fernandez)

U.S. says North Korea diplomacy ‘very much alive,’ but it’s watching rocket site

A satellite image of North Korea's Sohae Satellite Launching Station (Tongchang-ri) which Washington-based Stimson Center's 38 North says, "Rebuilding continues at the engine test stand" is seen in this image released from Washington, DC, U.S., March 7, 2019. Courtesy Airbus Defence & Space and 38 North, Pleiades © CNES 2019, Distribution Airbus DS/Handout via REUTERS

By David Brunnstrom and Matt Spetalnick

WASHINGTON (Reuters) – The chief U.S. envoy for North Korea said on Monday that “diplomacy is still very much alive” with Pyongyang despite a failed summit last month, but cautioned that Washington was closely watching activity at a North Korean rocket site and did not know if it might be planning a new launch.

Stephen Biegun told a conference in Washington that although U.S. President Donald Trump and North Korean leader Kim Jong Un parted on good terms after their Feb. 27-28 summit in Hanoi, big gaps remained between the two sides and North Korea needed to show it was fully committed to giving up its nuclear weapons.

Biegun, the U.S. special representative for North Korea, stressed that U.S.-led sanctions, which Pyongyang wants dropped, would stay in place until North Korea completed denuclearization. He rejected an incremental approach sought by Pyongyang, and said that easing sanctions for partial steps would amount to subsidizing North Korea’s weapons programs.

As Biegun spoke at the Carnegie Nuclear Conference, the Center for Strategic and International Studies (CSIS) think tank issued a new report on activity at North Korea’s Sohae rocket launch site, in which satellite images from Friday showed possible preparations for a launch.

In the course of nearly a year of diplomatic engagement with the United States, North Korea has maintained a freeze on missile and nuclear tests and space rocket launches in place since 2017. Trump has repeatedly stressed this as a positive outcome of the diplomacy.

Biegun said Washington did not know what the activity spotted in North Korea meant. He said the Trump administration took it “very seriously” but cautioned against drawing any snap conclusions.

“What Kim Jong Un will ultimately decide to do may very much be his decision and his decision alone,” Biegun said, adding that Trump had made clear last week he would be “very disappointed” if North Korea were to resume testing.

An authoritative U.S. government source familiar with U.S. intelligence assessments said they did not conclude that a launch was imminent, given North Korea’s apparent desire to keep negotiations going with the United States. However, the source said Pyongyang appeared to want to make clear it retained the capability to resume launches at any moment.

“Diplomacy is still very much alive,” Biegun said. He offered no specifics on when new talks might be held and did not say whether any talks had taken place since the summit, which collapsed over differences on U.S. demands for Pyongyang’s denuclearization and North Korea’s demand for sanctions relief.

ENGAGEMENT

“It’s certainly our expectation that we will be able to continue our close engagement,” Biegun said.

The State Department has declined to say whether there has been any direct engagement between the two sides since the summit.

A national security adviser to South Korean President Moon Jae-in said on Tuesday the United States should seek the gradual denuclearization of North Korea because an “all-or-nothing” strategy will not help break the impasse in talks.

To bridge the gap, Moon could pursue an unofficial inter-Korean summit as he did last year before the first summit between Trump and Kim, and then visit Washington, the adviser said.

Trump has said he remains open to more talks with Kim. U.S. Under Secretary of State for Arms Control and International Security Andrea Thompson told the Washington conference she thought there would be another summit.

Asked if there would be a third meeting, she said Secretary of State Mike Pompeo and Trump had “been very clear that they remain open to the dialogue. They haven’t got a date on the calendar but our teams continue to work towards that.”

Thompson said it was “incredibly important” that all countries continued to maintain U.N. sanctions on North Korea until it gave up its nuclear weapons.

“We are not letting the foot off the gas. We are going to continue with the pressure campaign,” she said.

At the White House on Monday, spokeswoman Sarah Sanders scoffed at reports that China was wary of holding a summit with Trump on trade after he walked out of his meeting with Kim without a deal.

“We’ll see what happens with North Korea the same way we’re going to see what happens in the negotiations with China. They’re ongoing,” she said.

Trump on Friday stressed again his belief in his personal rapport with Kim.

The CSIS report said commercial satellite images acquired last Wednesday and Friday showed North Korea had continued preparations on the launch pad at its Sohae launch facility and at the engine testing stand there.

“Based on past practices, these activities could be consistent with preparations for the delivery of a rocket to the launch pad or engine to the test stand; or they could be North Korean coercive bargain tactics,” it said.

Trump said after his first summit with Kim in Singapore last June that Kim had promised to dismantle the test stand, a pledge the North Korean leader reiterated and expanded on at a summit with Moon in September.

Pyongyang has used Sohae to launch satellites into space since 2011, and Washington says its work there has helped develop missile technology. A satellite launch in April 2012 killed off an Obama administration deal for a freeze in North Korean nuclear and missile testing reached weeks earlier.

(Reporting by David Brunnstrom, Mark Hosenball, Matt Spetalnick, Arshad Mohammed and Doina Chiacu; additional reporting by Hyonhee Shin in SEOUL, editing by Grant McCool and Sonya Hepinstall)

Malaysia frees Indonesian woman accused of Kim Jong Nam’s poisoning

Siti Aisyah, who was previously a suspect in the murder case of North Korean leader's half brother Kim Jong Nam reacts as she arrives in news conference, after a Malaysian court released her of charges at Halim Perdanakusuma airport in Jakarta, Indonesia, March 11, 2019. REUTERS/Willy Kurniawan

By Rozanna Latiff

KUALA LUMPUR (Reuters) – An Indonesian woman accused in the 2017 chemical poison murder of the North Korean leader’s half-brother was freed on Monday after a Malaysian court dropped the charge in a case that drew suspicions of being a political assassination.

As the court announced its decision, Siti Aisyah, 26, turned to her Vietnamese co-defendant, Doan Thi Huong, 30, in the dock and the two women, who had been facing the death penalty together, embraced in tears.

They had been accused of poisoning Kim Jong Nam, the half-brother of North Korean leader Kim Jong Un, with liquid VX, a banned chemical weapon, at Kuala Lumpur airport in February 2017.

Following the dramatic decision to release Siti Aisyah, a defense lawyer asked for an adjournment in the case against Huong in order to submit a request that charges be dropped against her too.

Defense lawyers have maintained that the women were pawns in an assassination orchestrated by North Korean agents. The North Korean embassy in Kuala Lumpur was defaced with graffiti just hours before the trial was to resume, authorities said.

Interpol had issued a red notice for four North Koreans who were identified as suspects by Malaysian police and had left the country hours after the murder.

During the trial, the court was shown CCTV footage of two women allegedly assaulting Kim Jong Nam while he prepared to check in for a flight.

Siti Aisyah, who had worked as a masseuse at a hotel in the Malaysian capital, and Huong, who described herself as an actress, had maintained that they believed they had been hired to participate in a reality TV prank show.

Once the court released her, Siti Aisyah, wearing a black traditional Malay dress and headscarf, was rushed to the Indonesian embassy, where she spoke briefly with journalists.

“I feel so happy. I did not expect that today I would be released,” Siti Aisyah said, adding that she was healthy and had been treated well in prison.

Prosecutors told the court that they had been instructed to withdraw the charge against Siti Aisyah. No reason was given.

While the court discharged Siti Aisyah from the case, it rejected her lawyer’s request for a full acquittal, as it said that the trial had already established a prima facie case and she could be recalled if fresh evidence emerged.

The defense had disputed whether the CCTV footage was clear enough to identify the Indonesian woman as an assailant, or establish what she had done to the victim.

Gooi Soon Seng, Siti Aisyah’s lawyer, said his client was “a scapegoat”.

“I still believe that North Korea had something to do with it,” Gooi said.

Kim Jong Nam had lived in exile in Macau for several years before the killing, having fled his homeland after his half-brother became North Korea’s leader in 2011 following their father’s death.

Some South Korean lawmakers said the North Korean regime had ordered the assassination of Kim Jong Nam, who had been critical of his family’s dynastic rule. Pyongyang has denied the accusation.

NOT OVER YET FOR HUONG

Left to stand trial by herself after Siti Aisyah’s release, Huong was still sobbing as she prepared to take the stand on Monday at the start of her defense. But the court agreed to resume proceedings on Thursday instead, pending a reply from the attorney-general to the request that charges against her also be withdrawn.

“Where is the principle of equality? Both of them were charged on the same evidence, the defense was called on fairly the same grounds,” said Salim Bashir, one of Huong’s lawyers.

“Until today, we do not know what were the exceptional circumstances that were needed for the attorney-general to review the charge against Siti Aisyah. The prosecution never advanced a single ground for the withdrawal.”

Although the two women were being tried together, the cases against them were separate, and the court had asked the Indonesian woman to present her defense first.

Siti Aisyah’s trial was suspended in December as her lawyers argued with prosecutors over access to statements made by seven witnesses.

Prosecutor Muhammad Iskandar Ahmad told Reuters the decision to withdraw the charge against her was made based on “several representations”, without elaborating.

Siti Aisyah flew back to Jakarta on Monday, accompanied by Indonesian Law Minister Yasonna H. Laoly.

Laoly said Siti Aisyah’s release, after over two years in prison, was the result of high-level diplomacy by his government, including meetings with Malaysian Prime Minister Mahathir Mohamad and the attorney-general.

“After studying the case thoroughly, we sent letters to the Attorney-General of Malaysia and met with him and Prime Minister Mahathir last August,” Laoly told reporters with Siti Aisyah shortly after landing in Jakarta.

Laoly had written to Malaysia’s attorney-general, laying the blame on North Korea.

“Miss Aisyah was deceived and had no awareness whatsoever that she was being used as an intelligence tool of North Korea,” he wrote.

(Additional reporting by Agustinus Beo Da Costa in JAKARTA; writing by Joseph Sipalan; Editing by Simon Cameron-Moore and Nick Macfie)

Third summit between Trump and North Korea’s Kim likely, no date set: U.S. official

FILE PHOTO: U.S. Under Secretary of State Andrea Thompson attends a panel discussion after a Treaty on the Non-Proliferation of Nuclear Weapons (NPT) conference in Beijing, China January 31, 2019. REUTERS/Thomas Peter/Pool

WASHINGTON (Reuters) – A U.S. Department of State official on Monday said she thinks there will be a third summit between U.S. President Donald Trump and North Korean leader Kim Jong Un, but no date has been set.

Trump and Kim’s second summit in Vietnam last month collapsed over differences on U.S. demands for Pyongyang’s denuclearization and North Korea’s demand for sanctions relief.

Trump’s national security adviser, John Bolton, said on Sunday that the president was open to another summit with Kim but more time may be needed. Trump and Kim first met in Singapore last June.

U.S. Secretary of State Mike Pompeo and the president “have been very clear that they remain open to the dialogue. They haven’t got a date on the calendar but our teams continue to work towards that,” U.S. Under Secretary of State for Arms Control and International Security Andrea Thompson said when asked if there would be a third meeting.

“Is there a next summit? Well, I think there will be,” said Thompson, who spoke at the Carnegie Nuclear Conference in Washington.

Thompson said it was “incredibly important” that all countries continued to maintain United Nations sanctions on North Korea until it gave up its nuclear weapons.

“We are not letting the foot off the gas. We are going to continue with the pressure campaign,” she said. “We are going to continue to hold those sanctions and we are going to continue to work with the team abroad to make sure those stay in place.”

Trump said on Friday he would be disappointed if Pyongyang were to resume weapons testing and reiterated his belief in his good relationship with Kim despite the collapse of the summit.

Trump commented after U.S. think tanks and Seoul’s spy agency said that North Korea was rebuilding a rocket launch site. Non-proliferation experts have said satellite images indicate North Korea could be preparing to launch a missile or a space rocket in spite of a freeze in testing that has been in place since 2017.

(Reporting by Arshad Mohammed and David Brunnstrom; Additional reporting by Susan Heavey; Editing by Meredith Mazzilli and Grant McCool)