Tag Archives: Sanctions

Turkish lira down as U.S. halts fighter parts delivery, threatens sanctions

FILE PHOTO: Turkish Lira banknotes are seen in this October 10, 2017 picture illustration. REUTERS/Murad Sezer/Illustration/File Photo

By Sarah Dadouch

ISTANBUL (Reuters) – The lira dropped nearly 3 percent on Tuesday after the United States halted delivery of equipment related to a Turkish order of F-35 fighter planes, warning Ankara’s insistence on buying Russian defense systems risked triggering sanctions.

At 1634 GMT, the lira stood at 5.6590 against the dollar, having earlier fallen 3.3 percent to as low as 5.6800.

The Turkish currency lost nearly 30 percent against the dollar last year in a sell-off sparked by concerns over the independence of the central bank and exacerbated by worsening ties with Washington.

“Factors behind last year’s currency crisis have reared their heads again,” said Jason Tuvey, senior emerging markets economist at Capital Economics.

Washington and other NATO allies are concerned that radar on the Russian S-400 missile system that Turkey is also buying will learn how to track the F-35, making it less able to evade Russian weapons.

A senior U.S. official said the purchase of the S-400 risked triggering sanctions.

Acting Defense Secretary Patrick Shanahan said later on Tuesday he expected to resolve the dispute, but his comments had little impact on the lira.

The row marks the latest in a series of bilateral disputes, notably over Turkish demands that the United States extradite Islamic cleric Fethullah Gulen, differences over Middle East policy and the war in Syria, and sanctions on Iran.

STRUCTURAL PROBLEMS

The lira has also been under pressure from domestic political developments.

Currency volatility in the run-up to local elections on Sunday led the central bank to suspend one-week repo auctions, a move seen by analysts as a “back door” tightening that reignited worries that the central bank was under pressure from politicians to lower its policy rate.

The lira lost as much as 2.5 percent against the dollar on Monday after results showed President Tayyip Erdogan’s AK Party on track to lose control of both Ankara and Istanbul, his popularity hit by the recession that the lira’s losses in large part triggered.

The AKP submitted objections to the results in all districts of both cities, party officials said on Tuesday.

“The lira is under pressure as now the focus is back on structural problems for the Turkish economy,” said Nikolay Markov, a senior economist at Pictet Asset Management.

A widening current account deficit could deepen the recession through a further lira depreciation, leading to higher inflation and borrowing costs, Markov said.

“The central bank should raise policy rates but that won’t happen because of pressure from the government,” although AKP electoral losses could reduce that pressure, he said.

(Reporting by Ezgi Erkoyun and Sarah Dadouch; Additional Reporting by Tom Arnold in London; Editing by Dominic Evans and John Stonestreet)

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)

Don’t take this North Korea guidebook with you, warns publisher

The North Korea Petit Fute touristic guide book is displayed during an interview with Reuters in Paris, France, March 19, 2019. REUTERS/Gonzalo Fuentes

By John Irish and Noemie Olive

PARIS (Reuters) – A French publisher has produced a rare guide to North Korea, highlighting its history, cultural wealth and beautiful landscapes but advising tourists not to take the politically sensitive book with them.

Tourism is one of the few remaining reliable sources of foreign income for North Korea after the U.N. imposed sanctions targeting 90 percent of its $3 billion annual exports including commodities, textiles and seafood.

Dominique Auzias, co-founder of the Petit Fute French touristic guide book, poses during an interview with Reuters for the launching of their North Korea guide book in Paris, France, March 19, 2019. REUTERS/Gonzalo Fuentes

Dominique Auzias, co-founder of the Petit Fute French touristic guide book, poses during an interview with Reuters for the launching of their North Korea guide book in Paris, France, March 19, 2019. REUTERS/Gonzalo Fuentes

Tensions over North Korea’s tests of nuclear weapons and ballistic missiles spiked on the Korean peninsula last year and there were fears of a U.S. military response to North Korea’s threat to develop a weapon capable of hitting the United States.

“There are a lot of people that are interested in this country be it for nuclear and military reasons, but also economically so … it’s important to provide information,” said Dominique Auzias, president of the Petit Fute, which publishes some 800 guides.

“As it’s a country that’s closed and forbidden everybody dreams of going there,” he said.

Some 400 French tourists visit the country each year with trips costing about 2,000 euros ($2,267).

The reclusive communist state has no official diplomatic relations with France.

Talks in June last year between U.S. President Donald Trump and North Korean leader Kim Jong Un provided a detente even if in recent weeks tensions have once again flared.

North Korean authorities would probably confiscate the printed edition given some of the material, Auzias said.

“You don’t go for adventure, but to discover,” he said.

The guide, which took three years to put together, touches little on where to stay or eat because accessing the country as a tourist can only be done through specific travel agents who determine what visitors see.

In some cases, however, they respond to requests and Auzias said the guide helps people decide what they would like to see.

It makes clear it is imperative to stick to the country’s strict rules or face dire consequences as American student Otto Warmbier did in 2016 when he was sentenced to 15 years of forced labor for trying to steal a propaganda poster in his hotel.

He was returned to the United States in a coma 17 months later, and died shortly after. A coroner said he died from lack of oxygen and blood to the brain.

“The first time I went 10-12 years ago I was proud because I was one of the rare French citizens to get in … but my second moment of happiness was about three weeks later when I left because it was suffocating and mind-boggling,” Auzias said.

(Reporting by John Irish and Noemeie Olive; Editing by Bate Felix and Alexandra Hudson)

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)

U.S. open to North Korea talks despite missile program activity

FILE PHOTO: Intercontinental ballistic missiles (ICBM) are driven past the stand with North Korean leader Kim Jong Un and other high-ranking officials during a military parade marking the 105th birth anniversary of the country's founding father Kim Il Sung, in Pyongyang April 15, 2017. REUTERS/Damir Sagolj/File Photo

By David Brunnstrom and Hyonhee Shin

WASHINGTON/SEOUL (Reuters) – U.S. President Donald Trump is open to additional talks with Pyongyang over denuclearization, his national security adviser said on Thursday, despite reports that North Korea is reactivating parts of its missile program.

New activity has been detected at a factory that produced North Korea’s first intercontinental ballistic missiles (ICBMs) capable of reaching the United States, South Korea’s JoongAng Ilbo and Donga Ilbo newspapers reported, citing lawmakers briefed by the National Intelligence Service.

This week, two U.S. think tanks and Seoul’s spy agency said North Korea was rebuilding a rocket launch site, prompting Trump to say he would be “very, very disappointed in Chairman Kim” if it were true.

The reports of North Korean activity raise more questions about the future of the dialogue Trump has pursued with North Korean leader Kim Jong Un after a second summit between the two leaders in Vietnam broke down last week.White House national security adviser John Bolton said on Thursday that Trump was still open to additional talks with North Korea over denuclearization.

“The president’s obviously open to talking again. We’ll see when that might be scheduled or how it might work out,” Bolton said in an interview with Fox News.

He said it was too soon to make a determination on the reports of the North Korean activities.

“We have a lot of ways of getting information,” he said. “We’re going to study the situation carefully. As the president said, it would be very, very disappointing if they were taking this direction.”

The Vietnam summit between Kim and Trump last week collapsed over differences on how far North Korea was willing to limit its nuclear program and the degree of U.S. willingness to ease economic sanctions against the isolated country.

Trump, eager for a big foreign policy win on North Korea that has eluded his predecessors for decades, has repeatedly stressed his good relationship with Kim. He went as far late last year as saying they “fell in love,” but the bonhomie has failed so far to bridge the wide gap between the two sides.

MISSILE FACTORY

Movement of cargo vehicles was spotted recently around a North Korean factory at Sanumdong in Pyongyang, which produced ICBMs.

South Korean spy chief Suh Hoon told lawmakers he viewed the activity as missile-related, the JoongAng Ilbo said. It quoted Suh as saying North Korea continued to run its uranium enrichment facility at the main Yongbyon nuclear complex after a first summit between Trump and Kim last June in Singapore.

The Sanumdong factory produced the Hwasong-15 ICBM, which can fly more than 13,000 km (8,080 miles). After its test flight in 2017, North Korea declared the completion of its “state nuclear force,” before pursuing talks with South Korea and the United States last year.

South Korea’s presidential office and defense ministry declined to confirm the reports on Sanumdong, saying they were closely monitoring North Korea’s activities together with the United States.

The U.S. State Department said it could not comment on intelligence matters.

Separately, U.S. think tanks reported on Thursday that North Korea’s Sohae Satellite Launching Station appeared to be operational again after work that began days before Trump met with Kim in Hanoi.

Washington’s Center for Strategic and International Studies think tank called the work a “snapback” after North Korea partially dismantled the site, acting on a pledge by Kim to Trump at the Singapore summit.

“The rebuilding activities at Sohae demonstrate how quickly North Korea can easily render reversible any steps taken towards scrapping its WMD program with little hesitation,” it said.

“North Korea’s actions constitute an affront to the president’s diplomatic strategy (and) demonstrate North Korean pique at Trump’s refusal to lift economic sanctions during the meetings in Hanoi.”

The Washington-based 38 North think tank also said the Sohae site appeared now to have returned to normal operational status.

FILE PHOTO: North Korean leader Kim Jong Un makes his way to board a train to depart for North Korea at Dong Dang railway station in Vietnam, March 2, 2019. REUTERS/Kim Kyung-Hoon

FILE PHOTO: North Korean leader Kim Jong Un makes his way to board a train to depart for North Korea at Dong Dang railway station in Vietnam, March 2, 2019. REUTERS/Kim Kyung-Hoon

SANCTIONS WARNING

Some analysts see the work as aimed at pressing Washington to agree to a deal, rather than as a definite move to resume tests.

A U.S. government source, who did not want to be identified, said North Korea’s plan in rebuilding the site could have been to offer a demonstration of good faith by conspicuously stopping again if a summit pact was struck, while furnishing a sign of defiance or resolve if the meeting failed.

Imagery from Planet Labs Inc analyzed by the Center for Nonproliferation Studies at the Middlebury Institute of International Studies in California showed activity at Sohae from Feb. 23 until Wednesday.

38 North said photos from Wednesday showed the rail-mounted transfer building used to move rockets at the site was complete, cranes had been removed from the launch pad and the transfer building moved to the end of the pad.

“But we don’t draw any conclusions from that besides they are restoring the facility,” Joel Wit of 38 North told Reuters. “There is no evidence to suggest anything more than that.”

On Wednesday, Bolton, a hardliner who was argued for a tough approach to North Korea in the past, warned of new sanctions if it did not scrap its weapons program.

Despite the sanctions talk, there have been signs across Asia that Trump’s “maximum pressure” sanctions campaign against North Korea has sprung leaks.

In a new sanctions breach, three South Korean companies were found to have brought in more than 13,000 tons of North Korean coal, worth 2.1 billion won ($2 million) since 2017, by making it out to have been produced in China and Vietnam, South Korea said.

North Korean media has given conflicting signals about its relations with the United States, while appearing to target Bolton as a spoiler.

Its state television aired a 78-minute documentary late on Wednesday focused on showing a cordial mood between Trump and Kim as the summit ended, indicating Pyongyang was not about to walk away from negotiations, experts say.

It also showed a stone-faced Bolton during a meeting in Hanoi, while Trump and other U.S. participants were all smiles.

In a return to a more usual, strident tone, the KCNA news agency criticized new small-scale military exercises that the United States and South Korea plan to hold instead of a large-scale spring exercise they have called off.

The news agency said the drills would be a “violent violation” of agreements signed between the United States and North Korea as well as between the two Koreas.

The U.S. and South Korean militaries said last week that they would not carry out a large-scale spring joint military exercises, replacing it with smaller-scale ones.

(Reporting by Jeff Mason and David Brunnstrom; additional reporting by Mark Hosenball, David Alexander and Tim Ahmann in Washington and Hyonhee Shin and Joyce Lee in Seoul; Editing by Clarence Fernandez and Alistair Bell)

South Korea sees signs North Korea restoring part of missile launch site: Yonhap

North Korea's leader Kim Jong Un inspects artillery launchers ahead of a military drill marking the 85th anniversary of the establishment of the Korean People's Army

WASHINGTON (Reuters) – South Korean intelligence agencies have detected signs that North Korea is restoring part of the Dongchang-ri missile launch site it tore down, Yonhap News Agency reported on Tuesday.

Specifically, Yonhap said the closed-off country, under pressure for years to discontinue its nuclear program, is putting back a roof and a door on the facility.

South Korea’s National Intelligence Service also said during a briefing for the National Assembly’s intelligence committee that “the U.S. information is the same as ours,” according to Yonhap.

A second summit on denuclearization between U.S. President Donald Trump and North Korean leader Kim Jong Un last week broke down over differences on how far North Korea was willing to limit its nuclear program and the degree of U.S. willingness to ease sanctions on the country.

U.S. Secretary of State Mike Pompeo said on Monday he was hopeful the United States would send a delegation to North Korea in the coming weeks.

South Korean President Moon Jae-in called for officials to try to find a way to restart talks between the North and the United States.

The breakdown of the summit was a blow for Moon, who had hoped eased U.S. sanctions would help lead to a restart of inter-Korean projects including a factory park, key to his vision for a pan-peninsula economic community.

(Reporting by Lisa Lambert; Writing by Nick Zieminski; Editing by David Gregorio)

Exclusive: Venezuela removed 8 tons of central bank gold last week – legislator

FILE PHOTO: Venezuela's President Nicolas Maduro touches a gold bar as he speaks during a meeting with the ministers responsible for the economic sector at Miraflores Palace in Caracas, Venezuela March 22, 2018. REUTERS/Marco Bello/File Photo

By Corina Pons and Mayela Armas

CARACAS (Reuters) – At least 8 tons of gold were removed from the Venezuelan central bank’s vaults last week, an opposition legislator and three government sources told Reuters, in the latest sign of President Nicolas Maduro’s desperation to raise hard currency amid tightening sanctions.

The gold was removed in government vehicles between Wednesday and Friday last week when there were no regular security guards present at the bank, Legislator Angel Alvarado and the three government sources said.

“They plan to sell it abroad illegally,” Alvarado said in an interview.

The central bank did not respond to requests for comment.

Alvarado and the government sources, who spoke on condition of anonymity, did not say where the central bank was sending the gold. They said the operation took place while central bank head Calixto Ortega was abroad on a trip.

In 2018, 23 tons of mined gold were transported from Venezuela to Istanbul by plane, according to sources and Turkish government data.

The central bank bought part of this gold from primitive gold-mining camps in the south of Venezuela and exported it to Turkey and other countries to finance the purchase of basic food supplies, given widespread shortages, according to more than 30 people with knowledge of the trade.

Some 20 tons of monetary gold were also removed from the central bank’s vaults in 2018, according to the bank’s data, leaving 140 tonnes remaining, the lowest level in 75 years.

Abu Dhabi investment firm Noor Capital said on Feb. 1 that it bought 3 tons of gold on Jan. 21 from the Venezuelan central bank and would not buy more until Venezuela’s situation stabilized. Noor Capital said its purchase was in accordance with “international standards and laws in place” as of that date.

Maduro’s government has been seeking to repatriate some 31 tons of gold in the Bank of England’s vaults on fears it could be caught up in international sanctions on the country.

“As you would expect, the Bank does not comment on individual customer relationships,” the Bank of England wrote in response to a request for comment. “In all its operations, the Bank observes the highest standards of risk management and abides by all relevant legislation.”

Venezuelan Foreign Minister Jorge Arreaza said on Wednesday, during a United Nations meeting in Geneva, that the Bank of England had blocked the government’s assets.

Maduro’s government has resorted to selling off gold after falling oil production, the country’s wider economic collapse and mounting sanctions hit public income and made it hard for the country to access credit.

The United States, which is backing an attempt by opposition leader Juan Guaido to force Maduro to step down and call new elections, has warned bankers and traders not to deal in Venezuelan gold.

(Reporting by Corina Pons and Mayela Armas; additional reporting by William Schomberg in London, Writing by Angus Berwick; Editing by Christian Plumb, Leslie Adler and Grant McCool)

Trump and North Korea’s Kim predict success in high-stakes nuclear summit

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

By Soyoung Kim and Jeff Mason

HANOI (Reuters) – North Korean leader Kim Jong Un and U.S. President Donald Trump met in Vietnam on Wednesday for a second summit that the United States hopes will persuade North Korea to give up its nuclear weapons in exchange for promises of peace and development.

Kim and Trump shook hands and smiled briefly in front of a row of their national flags at the Metropole hotel in the Vietnamese capital, Hanoi, before heading to dinner together.

Trump told reporters he thought the talks would be very successful, and asked if he was “walking back” on denuclearization, said “no”.

At their historic first summit in Singapore last June, Trump and Kim pledged to work toward denuclearization and permanent peace on the Korean peninsula but little progress has been made.

Kim said they had overcome obstacles to hold their second summit and praised Trump for his “courageous decision” to begin a dialogue.

“Now that we’re meeting here again like this, I’m confident that there will be an excellent outcome that everyone welcomes, and I’ll do my best to make it happen,” Kim said.

Trump and Kim held a 20-minute, one-on-one chat before sitting down to dinner with U.S. Secretary of State Mike Pompeo Trump’s acting Chief of Staff Mick Mulvaney, Kim’s top envoy, Kim Yong Chol, and North Korean Foreign Minister Ri Yong Ho.

On Thursday, the two leaders will hold a series of meetings, the White House said. The venue has not been announced.

“We’re going to have a very busy day tomorrow,” said a smiling, relaxed-looking Trump, seated beside Kim at a round table with the other four officials and two interpreters.

“Our relationship is a very special relationship.”

Experts said the pair were at pains to show their relationship had improved since their first meeting, with their body language closely mirroring each other.

A child with stickers of the North Korean and Vietnamese flags on her face reacts at the Vietnam-North Korea Friendship kindergarten, founded by North Korean Government in Hanoi, ahead of the North Korea-U.S. summit in Hanoi, Vietnam February 27, 2019. REUTERS/Athit Perawongmetha

A child with stickers of the North Korean and Vietnamese flags on her face reacts at the Vietnam-North Korea Friendship kindergarten, founded by North Korean Government in Hanoi, ahead of the North Korea-U.S. summit in Hanoi, Vietnam February 27, 2019. REUTERS/Athit Perawongmetha

GOOD RELATIONS

Trump said late last year he and Kim “fell in love”, but whether the bonhomie can move them beyond summit pageantry to substantive progress on eliminating Pyongyang’s nuclear arsenal that threatens the United States is the question that will dominate the talks.

Trump and Kim’s Singapore summit, the first meeting between a sitting U.S. president and a North Korean leader, ended with great fanfare but little substance over how to dismantle North Korea’s nuclear weapons and ballistic missiles.

In the run-up to this summit, Trump has indicated a more flexible stance, saying he was in no rush to secure North Korea’s denuclearization. He repeated that on Wednesday, saying while some people believed the talks should be moving more quickly, he was satisfied.

He has also said he would be happy as long as North Korea, which has not tested a nuclear weapon or intercontinental ballistic missile since 2017, maintained that freeze.

Some critics have said Trump appeared to be wavering on a long-standing U.S. demand for complete and irreversible denuclearization by North Korea and risked squandering leverage if he gave away too much, too quickly.

Asked if he would declare a formal end to the Korean War, which North Korea has long called for, Trump said: “We’ll see.”

North and South Korea have been technically at war since their 1950-53 conflict, with the Americans backing the South, ended in a truce, not a treaty.

Evans Revere, a former U.S. negotiator with North Korea, said Trump was under pressure, given the criticism and other domestic problems, and Kim might try to use that.

“Kim may be tempted to push Trump even harder for concessions, knowing how much the president wants and needs that testing pause,” Revere said.

Students from Nguyen Du secondary school hold U.S. and Vietnam flags outside the Presidential Palace, as they wait for wait to greet U.S. President Donald Trump, in Hanoi, Vietnam, February 27, 2019. REUTERS/Leah Millis

Students from Nguyen Du secondary school hold U.S. and Vietnam flags outside the Presidential Palace, as they wait for wait to greet U.S. President Donald Trump, in Hanoi, Vietnam, February 27, 2019. REUTERS/Leah Millis

‘AWESOME’ POTENTIAL

U.S. intelligence officials have said there is no sign North Korea will ever give up its entire arsenal of nuclear weapons, which it sees as its guarantee of national security. Analysts say it won’t commit to significant disarmament unless punishing U.S.-led economic sanctions are eased.

The two sides have discussed specific and verifiable denuclearization measures, such as allowing inspectors to observe the dismantlement of North Korea’s Yongbyon nuclear reactor, U.S. and South Korean officials say.

U.S. concessions could include opening liaison offices or clearing the way for inter-Korean projects.

Despite little progress on his goal of ridding North Korea of its weapons programs, Trump appeared to be betting on his personal relationship with Kim, and the economic incentive after 70 years of hostility between their countries.

“Vietnam is thriving like few places on earth. North Korea would be the same, and very quickly, if it would denuclearize,” Trump said on Twitter ahead of the meeting.

“The potential is AWESOME, a great opportunity, like almost none other in history, for my friend Kim Jong Un. We will know fairly soon – Very Interesting!”

For Trump, a deal that eases the North Korean threat could hand him a big foreign-policy achievement in the midst of domestic troubles.

While he is in Hanoi, his former personal lawyer Michael Cohen is testifying before U.S. congressional committees, with the president’s business practices the main focus.

Cohen, in wide-ranging testimony he is due to deliver on Wednesday, refers to a comment Trump made to him about avoiding the U.S. military draft for the Vietnam War on medical grounds: “‘You think I’m stupid, I wasn’t going to Vietnam’,” Cohen cited Trump as saying.

“I find it ironic, President Trump, that you are in Vietnam right now,” Cohen said in a draft statement seen by Reuters.

Trump, responding to the statement on Twitter, said Cohen was lying to reduce his prison time. He declined to respond when a reporter asked him about Cohen later.

 

(Reporting by Soyoung Kim and Jeff Mason in HANOI; Additional reporting by Hyonhee Shin, James Pearson, Mai Nyugen, Ju-min Park, Khanh Vu, Josh Smith in HANOI, David Brunnstrom and Matt Spetalnick in WASHINGTON; Editing by Robert Birsel and Lincoln Feast)

Venezuela hit with new U.S. sanctions after aid clashes

By Roberta Rampton and Luis Jaime Acosta

BOGOTA (Reuters) – The United States targeted Venezuela’s government with new sanctions on Monday and called on allies to freeze the assets of its state-owned oil company PDVSA after deadly violence blocked aid from reaching the crisis-hit country during the weekend.

The United States also took its pressure campaign to the United Nations Security Council, asking that body to discuss the situation in Venezuela, diplomats said.

The U.S. Treasury Department’s sanctions were imposed on four Venezuelan state governors allied with the government of embattled President Nicolas Maduro, blocking any assets they control in the United States.

The new sanctions were announced in Bogota as U.S. Vice President Mike Pence and opposition leader Juan Guaido met with members of the Lima Group, a bloc of nations from Argentina to Canada dedicated to peaceful resolution of the Venezuelan crisis.

Pence said the United States would stand by Guaido until freedom was restored to the oil-rich nation. He called for all Lima Group nations to immediately freeze PDVSA’s assets and to transfer ownership of “Venezuelan”assets “in their countries” from “Maduro’s henchmen” to Guaido’s government-in-waiting.

He also said tougher measures were coming.

“In the days ahead … the United States will announce even stronger sanctions on the regime’s corrupt financial networks,” Pence said. “We will work with all of you to find every last dollar that they stole and work to return it to Venezuela.”

Guaido, sitting next to Pence at the meeting, asked for a moment of silence for those killed in what he called the “massacre” of the weekend.

At least three people were killed and almost 300 wounded during the protests and clashes on Saturday as U.S.-backed aid convoys attempted to enter Venezuela to deliver food and medicine.

Guaido, recognized by most Western nations as Venezuela’s legitimate leader, has urged the bloc to consider “all options” in ousting Maduro.

Unlike the Lima Group, of which the United States is not a member, the Trump administration has so far declined to rule out the use of military force. But Peruvian Deputy Foreign Minister Hugo de Zela Martinez denied there was any division in the group over the use of force.

Pence also called for Mexico and Uruguay, two-left leaning regional governments, to join most of the region’s other powers in embracing Guaido as Venezuela’s rightful president.

Washington wants the 15-member U.N. Security Council to formally call for free, fair and credible presidential elections with international observers. Russia, which along with China has major investments in Venezuela’s energy sector and back Maduro, proposed a rival draft resolution.

Violence escalated during the weekend when the convoy of trucks with food and medicines was blocked by soldiers and armed groups loyal to Maduro. He says the aid efforts are part of a U.S.-orchestrated coup against the OPEC member.

In the Venezuelan town of San Antonio, near the border with Colombia, residents on Monday chafed at the continued border closure ordered by Maduro’s government last week.

Residents increasingly cross into the neighboring country to work and buy basic goods that are unavailable in Venezuela, which has been wracked by years of hyperinflation and shortages of food and medicine. Illegal crossings over back roads known as “trochas” generally require paying tolls to low-level criminals who control them, known as “trocheros.”

“We were hungry when before the border closed. Now it will be even worse,” said Belkis Garcia, 34, walking with her husband along a trail that leads to Colombia. “We have to pay (to cross), so the little money we have for half the food is not enough. We don’t know what will happen if the border continues closed.”

Four people have been killed, 58 have suffered bullet wounds and at least 32 arrested in unrest since Friday, local rights group Penal Forum said in a press conference.

The four governors sanctioned by the U.S. Treasury include the flamboyant Rafael Lacava of state of Carabobo, who in 2018 visited Washington as part of talks that led to the release of Joshua Holt, an American who was imprisoned in Venezuela for nearly two years. Lacava goes by the nickname “Dracula” in reference to his habit of doing late-night patrols and is known for off-the-cuff social media videos.

(Reporting by Luis Jaime Acosta, Roberta Rampton, Helen Murphy and Julia Symmes Cobb; Additional reporting by Mitra Taj in Lima, Aislinn Laing in Santiago, Lisandra Paraguassu in Brasilia, Mayela Armas and Anggy Polanco in Urena, and Shaylim Castro in Caracas; Writing by Helen Murphy and Julia Symmes Cobb; Editing by Bill Trott)