Tag Archives: Sanctions

Before expulsions, a brick-by-brick hardening of U.S. stance toward Moscow

By Phil Stewart and Matt Spetalnick

WASHINGTON (Reuters) – America’s most sweeping expulsion of Russian diplomats since the Cold War may have seemed like a dramatic escalation in Washington’s response to Moscow, but the groundwork for a more confrontational U.S. posture had been taking shape for months — in plain sight.

While President Donald Trump’s conciliatory rhetoric toward Moscow has dominated headlines, officials at the U.S. State Department, Pentagon and White House made a series of lower-profile decisions over the past year to counter Russia around the world – from Afghanistan to North Korea to Syria.

The State Department earlier in March announced plans to provide anti-tank missiles to Ukraine to defend against Russia-backed separatists in eastern Ukraine. Trump’s predecessor as president, Barack Obama, had declined to do so over fears of provoking Moscow.

In Syria last month, the U.S. military killed or injured as many as 300 men working for a Kremlin-linked private military firm after they attacked U.S. and U.S.-backed forces. The White House, meanwhile, firmly tied Russia to deadly strikes on civilians in Syria’s eastern Ghouta region.

Both the White House and Pentagon’s top policy documents unveiled in January portrayed Russia as an adversary that had returned to the center of U.S. national security planning.

That was all before the United States said on Monday it would expel 60 Russian diplomats, joining governments across Europe in punishing the Kremlin for a nerve agent attack on a former Russian spy in Britain that they have blamed on Moscow.

Russia has denied any involvement.

With Monday’s announcement, however, it was unclear whether Trump is promoting – or just acquiescing to – the tougher U.S. stance developed by his advisers and generals.

Trump’s critics sought to portray him as a reluctant actor in any get-tough approach to Russia, even though one senior administration official described him as involved “from the beginning” in the expulsions of Russian diplomats.

“It is disturbing how grudgingly he came to this decision,” said U.S. Representative Adam Smith, the top Democrat on the House Armed Services Committee.

Still, the Trump administration’s actions run counter to widespread perception, fueled by the president’s own statements, that Trump has softened America’s stance toward Russian President Vladimir Putin amid a U.S. investigation into Moscow’s meddling in the 2016 presidential election.

Regardless of the tough actions, the inconsistent messaging may undermine Washington’s strategy to deter Moscow’s aggressive behavior, experts warn.

“U.S. signaling is all undercut by Trump’s lack of seriousness about Russia,” said Andrew Weiss, a Russia expert at the Carnegie Endowment for International Peace.

Just last Tuesday, Trump congratulated Putin on his re-election, drawing sharp criticism from fellow Republicans.

But in another sign of mixed messaging, Trump two days later named John Bolton, a strident Russia hawk, to become his national security adviser.

DOWNWARD SPIRAL

Although the nerve agent attack was the official trigger for the U.S. expulsions, Trump administration officials warned that the attack should not be viewed in isolation, citing a series of destabilizing and aggressive actions by Moscow.

In Afghanistan, Trump’s top commander on the ground accused Russia again last week of arming Taliban militants.

On North Korea, Trump himself told Reuters in January that Russia was helping Pyongyang evade United Nations sanctions.

And less than two weeks ago, the Trump administration imposed the first sanctions against Russia for election meddling and cyber attacks, though it held off on punishing business magnates close to Putin.

U.S. officials and experts widely expect ties to further deteriorate, at least in the near term, and caution that Russia’s next steps could extend far beyond retaliation against American diplomats.

“The risk of escalation doesn’t just come from tit-for-tat punishments,” said Matthew Rojansky, a Russia expert at the Wilson Center think tank in Washington, citing the potential for more aggressive moves from the Middle East to the cyber realm.

U.S. officials have said the Trump administration still seeks to avoid a complete rupture in bilateral relations. One official said Russian cooperation was still sought to address thorny diplomatic issues like North Korea and Iran.

(Additional reporting by John Walcott; editing by Mary Milliken and G Crosse)

In a first, U.S. blames Russia for cyber attacks on energy grid

An electrical line technician works on restoring power in Vilonia, Arkansas April 29, 2014. REUTERS/Carlo Alle

By Dustin Volz and Timothy Gardner

WASHINGTON (Reuters) – The Trump administration on Thursday blamed the Russian government for a campaign of cyber attacks stretching back at least two years that targeted the U.S. power grid, marking the first time the United States has publicly accused Moscow of hacking into American energy infrastructure.

Beginning in March 2016, or possibly earlier, Russian government hackers sought to penetrate multiple U.S. critical infrastructure sectors, including energy, nuclear, commercial facilities, water, aviation and manufacturing, according to a U.S. security alert published Thursday.

The Department of Homeland Security and FBI said in the alert that a “multi-stage intrusion campaign by Russian government cyber actors” had targeted the networks of small commercial facilities “where they staged malware, conducted spear phishing, and gained remote access into energy sector networks.” The alert did not name facilities or companies targeted.

The direct condemnation of Moscow represented an escalation in the Trump administration’s attempts to deter Russia’s aggression in cyberspace, after senior U.S. intelligence officials said in recent weeks the Kremlin believes it can launch hacking operations against the West with impunity.

It coincided with a decision Thursday by the U.S. Treasury Department to impose sanctions on 19 Russian people and five groups, including Moscow’s intelligence services, for meddling in the 2016 U.S. presidential election and other malicious cyber attacks.

Russia in the past has denied it has tried to hack into other countries’ infrastructure, and vowed on Thursday to retaliate for the new sanctions.

‘UNPRECEDENTED AND EXTRAORDINARY’

U.S. security officials have long warned that the United States may be vulnerable to debilitating cyber attacks from hostile adversaries. It was not clear what impact the attacks had on the firms that were targeted.

But Thursday’s alert provided a link to an analysis by the U.S. cyber security firm Symantec last fall that said a group it had dubbed Dragonfly had targeted energy companies in the United States and Europe and in some cases broke into the core systems that control the companies’ operations.

Malicious email campaigns dating back to late 2015 were used to gain entry into organizations in the United States, Turkey and Switzerland, and likely other countries, Symantec said at the time, though it did not name Russia as the culprit.

The decision by the United States to publicly attribute hacking attempts of American critical infrastructure was “unprecedented and extraordinary,” said Amit Yoran, a former U.S. official who founded DHS’s Computer Emergency Response Team.

“I have never seen anything like this,” said Yoran, now chief executive of the cyber firm Tenable, said.

A White House National Security Council spokesman did not respond when asked what specifically prompted the public blaming of Russia. U.S. officials have historically been reluctant to call out such activity in part because the United States also spies on infrastructure in other parts of the world.

News of the hacking campaign targeting U.S. power companies first surfaced in June in a confidential alert to industry that described attacks on industrial firms, including nuclear plants, but did not attribute blame.

“People sort of suspected Russia was behind it, but today’s statement from the U.S. government carries a lot of weight,” said Ben Read, manager for cyber espionage analysis with cyber security company FireEye Inc.

ENGINEERS TARGETED

The campaign targeted engineers and technical staff with access to industrial controls, suggesting the hackers were interested in disrupting operations, though FireEye has seen no evidence that they actually took that step, Read said.

A former senior DHS official familiar with the government response to the campaign said that Russia’s targeting of infrastructure networks dropped off after the publication in the fall of Symantec’s research and an October government alert, which detailed technical forensics about the hacking attempts but did not name Russia.

The official declined to say whether the campaign was still ongoing or provide specifics on which targets were breached, or how close hackers may have gotten to operational control systems.

“We did not see them cross into the control networks,” DHS cyber security official Rick Driggers told reporters at a dinner on Thursday evening.

Driggers said he was unaware of any cases of control networks being compromised in the United States and that the breaches were limited to business networks. But, he added, “We know that there is intent there.”

It was not clear what Russia’s motive was. Many cyber security experts and former U.S. officials say such behavior is generally espionage-oriented with the potential, if needed, for sabotage.

Russia has shown a willingness to leverage access into energy networks for damaging effect in the past. Kremlin-linked hackers were widely blamed for two attacks on the Ukrainian energy grid in 2015 and 2016, that caused temporary blackouts for hundreds of thousands of customers and were considered first-of-their-kind assaults.

Senator Maria Cantwell, the top Democrat on the Senate Energy and Natural Resources Committee, asked the Trump administration earlier this month to provide a threat assessment gauging Russian capabilities to breach the U.S. electric grid.

It was the third time Cantwell and other senators had asked for such a review. The administration has not yet responded, a spokesman for Cantwell’s office said on Thursday.

Last July, there were news reports that the Wolf Creek Nuclear Operating Corp, which operates a nuclear plant in Kansas, had been targeted by hackers from an unknown origin.

Spokeswoman Jenny Hageman declined to say at the time if the plant had been hacked but said that there had been no operational impact to the plant because operational computer systems were separate from the corporate network. Hageman on Thursday said the company does not comment on security matters.

John Keeley, a spokesman for the industry group the Nuclear Energy Institute, said: “There has been no successful cyber attack against any U.S. nuclear facility, including Wolf Creek.”

(Reporting by Dustin Volz and Timothy Gardner, additional reporting by Jim Finkle; Editing by Tom Brown, Alistair Bell and Cynthia Osterman)

Britain expels 23 Russian diplomats over chemical attack on ex-spy

Russia's flag flies from the consular section of its embassy, in central London, Britain March 14, 2018. REUTERS/Phil Noble

By Costas Pitas and Estelle Shirbon

LONDON (Reuters) – Britain will expel 23 Russian diplomats in response to a nerve toxin attack on a Russian former double agent in southern England, Prime Minister Theresa May said on Wednesday, adding it was the biggest single expulsion in over 30 years.

May said Britain would also introduce new measures to strengthen defenses against hostile state activities, freeze Russian state assets wherever there was evidence of a threat and downgrade its attendance at the soccer World Cup in Russia this summer.

Russia, which has repeatedly denied any involvement in the nerve agent attack, said Britain should expect retaliation for its actions.

Former spy Sergei Skripal, 66, and his daughter Yulia, 33, were found unconscious on a bench in the city of Salisbury on March 4 and remain in hospital in critical condition. A police officer was also harmed and remains in a serious condition.

May has said the Skripals were attacked with Novichok, a Soviet-era military-grade nerve agent. She had asked Moscow to explain whether it was responsible for the attack or had lost control of stocks of the highly dangerous substance.

“Their response demonstrated complete disdain for the gravity of these events,” May said in a statement to parliament.

“They have treated the use of a military grade nerve agent in Europe with sarcasm, contempt and defiance.

“There is no alternative conclusion, other than that the Russian state was culpable for the attempted murder of Mr Skripal and his daughter, and for threatening the lives of other British citizens in Salisbury, including Detective Sergeant Nick Bailey.

“This represents an unlawful use of force by the Russian state against the United Kingdom.”

May said the expulsion of the 23 diplomats, identified as undeclared intelligence officers, was the biggest single expulsion for over 30 years and would degrade Russian intelligence capabilities in Britain for years to come.

“We will freeze Russian state assets wherever we have the evidence that they may be used to threaten the life or property of UK nationals or residents,” May said.

She also said new legislative proposals would be urgently developed to counter any threat from a hostile state.

“This will include the addition of a targeted power to detain those suspected of hostile state activity at the UK border,” May said.

British authorities would make use of existing powers to enhance efforts to monitor and track the intentions of those traveling to the UK who could be engaged in activities that represented a security threat.

“We will increase checks on private flights, customs and freight,” she said.

She also threatened action against those she described as “serious criminals and corrupt elites,” adding: “There is no place for these people, or their money, in our country.”

May said Britain would revoke an invitation to Russian Foreign Minister Sergei Lavrov to visit the country and suspend all planned high level bilateral contacts between London and Moscow.

On the soccer World Cup, she said no ministers or members of the British royal family would attend.

(Reporting by Costas Pitas, Estelle Shirbon, Guy Faulconbridge, Michael Holden, Elizabeth Piper and William James, additional reporting by Polina Ivanova in Moscow, writing by Estelle Shirbon; editing by Stephen Addison)

White House: Talks with North Korea must lead to ending nuclear program

Pyeongchang 2018 Winter Olympics - Closing ceremony - Pyeongchang Olympic Stadium - Pyeongchang, South Korea - February 25, 2018 - Ivanka Trump (L to R), U.S. President Donald Trump's daughter and senior White House adviser, South Korean President Moon Jae-in and Kim Yong Chol of the North Korea delegation attend the closing ceremony. REUTERS/Lucy Nicholson

By Yuna Park and Roberta Rampton

SEOUL/WASHINGTON (Reuters) – The White House said any talks with North Korea must lead to an end to its nuclear program after senior officials from Pyongyang visiting South Korea said on Sunday their government was open to talks with the United States.

The North Korean delegation, in Pyeongchang for the closing ceremony of the Winter Olympics, met at an undisclosed location with South Korean President Moon Jae-in, and expressed a willingness to meet with the United States, Moon’s office said in a statement.

The Pyongyang delegation said developments in relations between the two Koreas and between North Korea and the United States should go hand in hand, according to the statement.

The Olympics gave a boost to recent engagement between the two Koreas after more than a year of sharply rising tensions over the North’s missile program and its sixth and largest nuclear test in defiance of U.N. sanctions.

The United States announced on Friday it was imposing its largest package of sanctions aimed at getting North Korea to give up its nuclear and missile programs.

On Sunday, North Korean state media accused the United States of provoking confrontation on the Korean peninsula with the sanctions.

The White House said its sanctions would continue.

“We will see if Pyongyang’s message today, that it is willing to hold talks, represents the first steps along the path to denuclearization,” the White House said in a statement.

“In the meantime, the United States and the world must continue to make clear that North Korea’s nuclear and missile programs are a dead end,” it said.

NO INTERACTION WITH IVANKA TRUMP

Moon, the North Korean delegation, and Ivanka Trump, U.S. President Donald Trump’s daughter, were among dignitaries who attended the Olympics closing ceremony on Sunday.

Ivanka Trump, a senior White House adviser, did not interact with the North Korean delegation, a senior U.S. administration official said. She met Moon on Friday as part of a weekend trip leading the U.S. delegation to the closing ceremony.

North Korea sent former military intelligence chief Kim Yong Chol, an official accused of being behind a deadly 2010 attack on a South Korean warship, to lead its delegation.

The decision enraged the families of 46 sailors killed in the torpedo attack and threatened the mood of rapprochement that Seoul sought to create at what it called the “Peace Games.”

North Korea has denied its involvement in the sinking.

Moon met Kim in Pyeongchang, where the Olympics were held, before the closing ceremony, the South Korean government said.

Earlier, about 100 conservative South Korean lawmakers and activists staged a sit-in near the border with North Korea, to protest Kim’s arrival and facing off against about 2,500 South Korean police.

The North’s delegation took a different route, prompting the opposition Korea Liberty Party to accuse Moon’s administration of “abuse of power and an act of treason” by rerouting the motorcade to shield it from the protest.

TRUMP WARNING

The North sent Kim Yo Jong, the younger sister of North Korean leader Kim Jong Un, to the opening ceremony.

She was the center of a frenzy of attention, especially when she appeared at the opening ceremony and was only a few feet from U.S. Vice President Mike Pence. They did not speak.

Kim Yo Jong and the North’s nominal head of state were the most senior North Korean officials to visit the South in more than a decade. The North Korean leader later said he wanted to create a “warm climate of reconciliation and dialogue.”

The U.S. president, in announcing the new sanctions on Friday, warned of a “phase two” that could be “very, very unfortunate for the world” if the sanctions did not work.

North Korea denounced the sanctions in a statement carried on its state media and said a blockade by the United States would be considered an act of war.

China also reacted angrily, saying on Saturday the unilateral targeting of Chinese firms and people risked harming cooperation on North Korea.

Moon won election last year promising to try to improve relations with the North.

(Reporting by Yuna Park and Christine Kim in Seoul; additional reporting by Yasmeen Abutaleb and Roberta Rampton in Washington; Writing by Josh Smith; Editing by Daniel Wallis and Jeffrey Benkoe)

Trump tells Putin more steps needed to scrap North Korea nuclear program

President Donald Trump and Russia's President Vladimir Putin talk during the family photo session at the APEC Summit in Danang, Vietnam November 11, 2017.

WASHINGTON (Reuters) – U.S. President Donald Trump, who complained last month that Moscow was “not helping us at all with North Korea,” told Russian President Vladimir Putin on Monday that more needs to be done to scrap Pyongyang’s nuclear program, the White House said.

“President Trump reiterated the importance of taking further steps to ensure the denuclearization of North Korea,” the White House said in a statement about the call with Putin.

In an interview with Reuters last month, Trump accused Russia of helping North Korea evade international sanctions meant to punish Pyongyang for its pursuit of a nuclear-armed missile capable of reaching the United States.

“Russia is not helping us at all with North Korea,” Trump told Reuters.

Moscow denies it has failed to uphold U.N. sanctions.

Trump and Putin spoke after U.S. Vice President Mike Pence, in an interview with the Washington Post, raised the prospect of talks with North Korea.

But Pence, who traveled to South Korea for the Winter Olympics, also said Washington would intensify its “maximum pressure campaign” against Pyongyang until it takes a “meaningful step toward denuclearization.”

Last year, North Korea conducted dozens of missile launches and its sixth and largest nuclear test in defiance of U.N. resolutions.

Russia signed on to the latest rounds of United Nations Security Council sanctions against North Korea imposed last year, including a ban on coal exports, which are an important source of the foreign currency Pyongyang needs to fund its nuclear program.

But North Korea shipped coal to Russia at least three times last year after the ban was put in place on Aug. 5, three Western European intelligence sources told Reuters.

The North Korean coal was shipped to the Russian ports of Nakhodka and Kholmsk, where it was unloaded at docks and reloaded onto ships that took it to South Korea or Japan, the sources said.

(Reporting by Eric Beech; Editing by Eric Walsh and Peter Cooney)

More than 200 companies have Israeli settlement ties: U.N

A construction site is seen in the Israeli settlement of Givat Zeev, in the occupied West Bank December 22, 2016.

By Stephanie Nebehay

GENEVA (Reuters) – The United Nations human rights office said on Wednesday it had identified 206 companies so far doing business linked to illegal Israeli settlements in the West Bank and it urged them to avoid any complicity in “pervasive” violations against Palestinians.

Israel fears that companies in the U.N. “blacklist” could be targeted for boycotts or divestment aimed at stepping up pressure over its settlements, which most countries and the world body view as illegal.

“Businesses play a central role in furthering the establishment, maintenance and expansion of Israeli settlements,” the U.N. report said.

The settlements alter the demographic composition of the occupied Palestinian territory, seized by Israel in 1967, and threaten the Palestinians’ right to determination, it said.

The majority of the companies, or 143, are domiciled in Israel or the settlements, followed by 22 in the United States, it said. The remainder are based in 19 other countries, including Germany, the Netherlands, France and Britain.

The report, which did not name the companies but said that 64 of them had been contacted to date, said that the work in producing the U.N. database “does not purport to constitute a judicial process of any kind”.

But businesses operating in the occupied area have a responsibility to carry out due diligence and consider “whether it is possible to engage in such an environment in a manner that respects human rights”, it said.

The office’s mandate was to identify businesses involved in the construction of settlements, surveillance, services including transport, and banking and financial operations such as loans for housing that may raise human rights concerns.

Human rights violations associated with the settlements are “pervasive and devastating, reaching every facet of Palestinian life,” the report said. It cited restrictions on freedom of religion, movement and education and lack of access to land, water and jobs.

Israel assailed the Human Rights Council in March 2016 for launching the initiative at the request of countries led by Pakistan, calling the database a “blacklist” and accusing the 47-member state forum of behaving “obsessively” against it.

Israel’s mission in Geneva said on Wednesday that it was preparing a statement responding to the U.N. report. There was no immediate reaction by its main ally, the Untied States.

“We hope that our work in consolidating and communicating the information in the database will assist States and businesses in complying with their obligations and responsibilities under international law,” said U.N. High Commissioner for Human Rights Zeid Ra’ad al-Hussein.

Zeid’s office deferred the report last February saying it needed more time to establish the database. It is to be debated at the U.N. Human Rights Council session of Feb 26 – March 23.

(Reporting by Stephanie Nebehay; Editing by Richard Balmforth)

60,000 North Korean children may starve, sanctions slow aid: UNICEF

A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva October 2, 2014.

By Stephanie Nebehay

GENEVA (Reuters) – An estimated 60,000 children face potential starvation in North Korea, where international sanctions are exacerbating the situation by slowing aid deliveries, the United Nations Children’s Fund (UNICEF) said on Tuesday.

World powers have imposed growing sanctions on North Korea for its nuclear and ballistic missile programs. Last week the United States announced fresh sanctions on nine entities, 16 people and six North Korean ships it accused of helping the weapons programs.

Under United Nations Security Council resolutions, humanitarian supplies or operations are exempt from sanctions, Omar Abdi, UNICEF deputy executive director, said.

“But what happens is that of course the banks, the companies that provide goods or ship goods are very careful. They don’t want to take any risk of later on being associated (with) breaking the sanctions,” Abdi told a news briefing.

“That is what makes it more difficult for us to bring things. So it takes a little bit longer, especially in getting money into the country. But also in shipping goods to DPRK. There are not many shipping lines that operate in that area,” he said, referring to the Democratic People’s Republic of Korea.

Sanctions on fuel have been tightened, making it more scarce and expensive, Abdi added.

Reuters, citing three Western European intelligence sources, reported exclusively last week that North Korea shipped coal to Russia last year which was then delivered to South Korea and Japan in a likely violation of U.N. sanctions.

“We are projecting that at some point during the year 60,000 children will become severely malnourished. This is the malnutrition that potentially can lead to death. It’s protein and calorie malnutrition,” said Manuel Fontaine, director of UNICEF emergency programs worldwide.

“So the trend is worrying, it’s not getting any better.”

In all, 200,000 North Korean children suffer from acute malnutrition, including 60,000 with the most severe form that can be lethal, according to UNICEF.

UNICEF had projected 60,000 children would suffer severe acute malnutrition last year, and reached 39,000 of them with therapeutic feeding, spokesman Christophe Boulierac said.

“Diarrhoea related to poor sanitation and hygiene and acute malnutrition remains a leading cause of death among young children,” it said in Tuesday’s appeal to donors that gave no toll.

UNICEF is seeking $16.5 million this year to provide nutrition, health and water to North Koreans but faces “operational challenges” due to the tense political context and “unintended consequences” of sanctions, it said.

It cited “disruptions to banking channels, delays in clearing relief items at entry ports, difficulty securing suppliers and a 160 percent increase in fuel prices”.

“It’s a very close, and tightly monitored intervention which is purely humanitarian in its essence,” Fontaine said.

UNICEF is one of only a few aid agencies with access to the isolated country, which suffered famine in the mid-1990s that killed up to three million people.

(Reporting by Stephanie Nebehay; Editing by Peter Graff)

Exclusive: Despite sanctions, North Korea exported coal to South and Japan via Russia

A cargo ship is loaded with coal during the opening ceremony of a new dock at the North Korean port of Rajin July 18, 2014.

By Guy Faulconbridge, Jonathan Saul and Polina Nikolskaya

PARIS/LONDON/MOSCOW (Reuters) – North Korea shipped coal to Russia last year which was then delivered to South Korea and Japan in a likely violation of U.N. sanctions, three Western European intelligence sources said.

The U.N. Security Council banned North Korean exports of coal last Aug. 5 under sanctions intended to cut off an important source of the foreign currency Pyongyang needs to fund its nuclear weapon and long-range missile programs.

But the secretive Communist state has at least three times since then shipped coal to the Russian ports of Nakhodka and Kholmsk, where it was unloaded at docks and reloaded onto ships that took it to South Korea or Japan, the sources said.

A Western shipping source said separately that some of the cargoes reached Japan and South Korea in October last year. A U.S. security source also confirmed the coal trade via Russia and said it was continuing.

“Russia’s port of Nakhodka is becoming a transhipping hub for North Korean coal,” said one of the European security sources, who requested anonymity because of the sensitivity of international diplomacy around North Korea.

Asked to respond to the report, Kremlin spokesman Dmitry Peskov said on Friday that Russia abided by international law.

“Russia is a responsible member of the international community,” he told reporters on a conference call.

Interfax news agency quoted an unidentified official at Russia’s embassy to North Korea on Friday as saying Russia did not buy coal from North Korea and was “not a transit point for coal deliveries to third countries.”

Russia’s mission to the United Nations told the Security Council sanctions committee on Nov. 3 that Moscow was complying with the sanctions.

Two lawyers who specialize in sanctions law told Reuters it appeared the transactions violated U.N. sanctions.

Reuters could not independently verify whether the coal unloaded at the Russian docks was the same coal that was then shipped to South Korea and Japan. Reuters also was unable to ascertain whether the owners of the vessels that sailed from Russia to South Korea and Japan knew the origin of the coal.

The U.S. Treasury on Wednesday put the owner of one of the ships, the UAL Ji Bong 6, under sanctions for delivering North Korean coal to Kholmsk on Sept. 5.

It was unclear which companies profited from the coal shipments.

RUSSIA URGED “DO MORE” ON SANCTIONS

North Korean coal exports were initially capped under a 2016 Security Council resolution that required countries to report monthly imports of coal from North Korea to the council’s sanctions committee within 30 days of the end of each month.

Diplomats, speaking on condition of anonymity, said Russia had not reported any imports of North Korea coal to the committee last year.

The sanctions committee told U.N. member states in November that a violation occurs when “activities or transactions proscribed by Security Council resolutions are undertaken or attempts are made to engage in proscribed transactions, whether or not the transaction has been completed.”

Asked about the shipments identified by Reuters, Matthew Oresman, a partner with law firm Pillsbury Winthrop Shaw Pittman who advises companies on sanctions, said: “Based on these facts, there appears to be a violation of the U.N. Security Council resolution by the parties involved.”

“Also those involved in arranging, financing, and carrying out the shipments could likely face U.S. sanctions,” he said.

Asked about the shipments, a U.S. State Department spokesman said: “It’s clear that Russia needs to do more. All U.N. member states, including Russia, are required to implement sanctions resolutions in good faith and we expect them all to do so.”

The White House did not immediately respond to a request for comment.

The independent panel of experts that reports to the Security Council on violations of sanctions was not immediately available for comment.

North Korea has refused to give up the development of nuclear missiles capable of hitting the United States. It has said the sanctions infringe its sovereignty and accused the United States of wanting to isolate and stifle North Korea.

An independent panel of experts reported to the Security Council on Sept. 5 that North Korea had been “deliberately using indirect channels to export prohibited commodities, evading sanctions.”

Reuters reported last month that Russian tankers had supplied fuel to North Korea at sea and U.S. President Donald Trump told Reuters in an interview on Jan. 17 that Russia was helping Pyongyang get supplies in violation of the sanctions.

The U.S. Treasury on Wednesday imposed sanctions on nine entities, 16 people and six North Korean ships it accused of helping the weapons programs.

TWO ROUTES

Two separate routes for the coal were identified by the Western security sources.

The first used vessels from North Korea via Nakhodka, about 85 km (53 miles) east of the Russian city of Vladivostok.

One vessel that used this route was the Palau-flagged Jian Fu which Russian port control documents show delivered 17,415 tonnes of coal after sailing from Nampo in North Korea on Aug. 3 and docking at berth no. 4 run by LLC Port Livadiya in Nakhodka. It left the port on Aug. 18.

The vessel had turned off its tracking transmitter from July 24 to Aug. 2, when it was in open seas, according to publicly available ship tracking data. Under maritime conventions, this is acceptable practice at the discretion of the ship’s captain, but means the vessel could not be tracked publicly.

Another ship arrived at the same berth — No. 4 — on Aug. 16, loaded 20,500 tonnes of coal and headed to the South Korean port of Ulsan in Aug. 24, according to Russian port control documents.

Reuters was unable to reach the operator of the Jian Fu, which was listed in shipping directories as the China-based Sunrise Ship Management. The Nakhodka-based transport agent of the Jian Fu did not respond to written and telephone requests for comment. LLC Port Livadiya did not respond to a written request for comment.

The second route took coal via Kholmsk on the Russian Pacific island of Sakhalin, north of Japan.

At least two North Korean vessels unloaded coal at a dock in Kholmsk port in August and September after arriving from the ports of Wonsan and Taean in North Korea, Russian port control data and ship tracking data showed.

The Rung Ra 2 docked in Kholmsk three times between Aug 1 and Sept. 12, unloading a total of 15,542 tonnes of coal, while the Ul Ji Bong 6 unloaded a total of 10,068 tonnes of coal on two separate port calls — on Aug. 3 and between Sept. 1 and Sept. 8, according to the official Russian Information System for State Port Control.

The coal did not pass Russian customs because of the UN sanctions taking effect, but was then loaded at the same dock onto Chinese-operated vessels. Those vessels stated their destination in Russian port control documents as North Korea, according to a source in Sakhalin port administration who spoke on condition of anonymity.

Reuters has seen the port control documents which state the destination of the coal as North Korea. But the vessels that loaded the North Korean coal sailed instead for the ports of Pohang and Incheon in South Korea, ship tracking data showed.

In Beijing on Friday, foreign ministry spokeswoman Hua Chunying told reporters she did not know anything about the situation but China was clear in its hope that the UN resolutions are followed fully.

China will not allow any Chinese company or individual to do anything that goes against the resolutions and if there is cast-iron proof this is happening, China will handle it seriously and in accordance with the law, she added.

The U.S. Treasury on Wednesday included the owner of the Ul Ji Bong 6 under sanctions for delivering North Korean coal to Kholmsk after the sanctions took effect.

It was unclear which companies profited from the coal shipments.

Asked about the shipments, a South Korean foreign ministry official said: “Our government is monitoring any sanctions-evading activities by North Korea. We’re working closely with the international community for the implementation of the sanctions.”

The official declined to say whether the ministry was aware of the shipments reported by Reuters.

The Japanese foreign ministry did not immediately respond to a request for comment.

The European security sources said the route via Russia had developed as China, North Korea’s neighbor and lone major ally, cracked down on exports from the secretive Communist state.

“The Chinese have cracked down on coal exports from North Korea so the smuggling route has developed and Russia is the transit point for coal,” one of the European security sources said.

(Writing by Guy Faulconbridge and Jonathan Saul; Additional reporting by Michele Nichols in New York, Oksana Kobzeva and Gleb Stolyarov in Moscow, Hyonhee Shin in Seoul, William James in London, Muyu Xu, Ben Blanchard and Josephine Mason in Beijing, Aaron Sheldrick and Linda Sieg in Tokyo, and Mark Hosenball and Matt Spetalnick in Washington; Editing by Timothy Heritage, Clarence Fernandez and Sonya Hepinstall)

Tillerson: Evidence sanctions ‘really starting to hurt’ North Korea

U.S. Secretary of State Rex Tillerson speaks at a news conference during the Foreign Ministers’ Meeting on Security and Stability on the Korean Peninsula in Vancouver, British Columbia, Canada, January 16, 2018.

By David Brunnstrom

ABOARD U.S. GOVERNMENT AIRCRAFT (Reuters) – U.S. Secretary of State Rex Tillerson said on Wednesday the United States is getting evidence that international sanctions are “really starting to hurt” North Korea, even as he accused Russia of not implementing all of the measures.

U.S. President Donald Trump told Reuters in an interview earlier on Wednesday that Russia was helping North Korea evade international sanctions and that Pyongyang was getting closer every day to being able to deliver a long-range missile to the United States.

Tillerson told reporters the Russian failure to comply with the U.N. measures “primarily” concerned fuel “but some other areas potentially as well.” He did not provide details.

Nevertheless, Tillerson said he was confident the pressure would eventually bring North Korea to the negotiating table over its nuclear and missile programs. Pyongyang has carried out nuclear and missiles tests in defiance of U.N. and other sanctions.

“We are getting a lot of evidence that these sanctions are really starting to hurt,” Tillerson said, citing intelligence and anecdotal evidence from defectors.

He said Japan told a conference on North Korea in Vancouver on Tuesday that more than 100 North Korean fishing boats had drifted into its waters and two-thirds of those aboard them had died.

“What they learned is that they are being sent out in the winter time because there’s food shortages and they are being sent out to fish with inadequate fuel to get back,” he said.

South Korean President Moon Jae-in had attributed North Korea’s recent willingness to talk to South Korea to the pain of sanctions, Tillerson told an event at Stanford University in California.

But he later said he suspected Russia may not only be failing to implement some sanctions but “frustrating” some of the effort to press the North.

“It’s apparent to us that they’re not implementing all the sanctions and there’s some evidence they may be frustrating some of the sanctions,” Tillerson said aboard his aircraft while returning from Vancouver.

CHINESE PRESSURE

China did not attend the Vancouver meeting, where 20 nations agreed to step up sanctions pressure on the North, but Tillerson highlighted Beijing’s role.

“We have never had Chinese support for sanctions like we’re getting now,” he said. “Russia’s a slightly different issue, but the Chinese have leaned in hard on the North Koreans.”

Asked whether there was a humanitarian concern that sanctions were hurting ordinary North Koreans, he said: “That’s a choice the regime’s making. The regime gets to decide how they allocate their available resources.”

“We are not going to take any responsibility for the fact that he (North Korean leader Kim Jong Un) is choosing to make his own people suffer,” Tillerson said.

Asked if he was concerned that South Korea might resume some humanitarian aid to North Korea as part of the resumption of North-South talks this month, thereby weakening sanctions, Tillerson said: “Countries will have to make their own choice, but we would be very skeptical that aid that goes into the country will necessarily relieve the suffering of the people.”

Tillerson said that, while North Korea had a record of seeking to drive a wedge between the United States and its allies through “charm offensives,” Washington was supportive of the North-South dialogue.

Tillerson said of North Korean leader Kim Jong Un: “He knows how to reach me, if he wants to talk. But he’s got to tell me he wants to talk. We’re not going to chase him.”

He said he was confident the sides would eventually get to the negotiating table and he wanted North Korea to know that, when that happened, the United States had “very, very strong military options standing behind me.”

The Trump administration has said repeatedly that all options are available, including military ones, in forcing North Korea to give up its development of nuclear missiles capable of reaching the United States, although it prefers a diplomatic solution.

(Reporting by David Brunnstrom; Editing by Grant McCool and Robert Birsel)

Russia: North Korea summit undermines U.N., aggravates situation

U.S. Secretary of State Rex Tillerson and Canada’s Foreign Minister Chrystia Freeland speak at a news conference during the Foreign Ministers’ Meeting on Security and Stability on the Korean Peninsula in Vancouver, British Columbia, Canada, January 16, 2018.

MOSCOW (Reuters) – Russia hit out on Wednesday at a U.S.-led effort to increase international pressure on North Korea, saying it was making the situation worse and undermining the United Nations.

Twenty nations hosted by the United States and Canada in Vancouver agreed on Tuesday to consider tougher sanctions to press North Korea to give up its nuclear weapons.

North Korean leader Kim Jong Un has refused to give up development of nuclear missiles capable of hitting the United States in spite of increasingly severe U.N. sanctions, raising fears of a new war on the Korean peninsula.

The Russian Foreign Ministry said top diplomats from Moscow and Beijing had not been invited to the meeting — which was made up of countries that backed South Korea during the 1950-53 Korea War — and that the events were damaging the authority of the United Nations.

“It is an absolutely unacceptable situation, when 17 countries take upon themselves the role of ‘helper’ to the UN Security Council and interpreter of its resolutions, thereby actually putting its authority into doubt,” the ministry said in a statement.

“Such events, conducted hastily and to the detriment of functioning multilateral formats, are not contributing to the normalisation of the situation around the Korean peninsula, but on the contrary, aggravating it.”

North and South Korea began talks last week for the first time in more than two years and agreed on Wednesday to field a combined women’s ice hockey team and march together under one flag at next month’s Winter Olympics in PyeongChang.

(Reporting by Jack Stubbs; Editing by Catherine Evans)