U.S. Hits Network Allegedly Facilitating Russia-North Korea Sanctions Evasion

The test-firing of a North Korean multiple rocket launcher (file photo)

The United States on September 19 imposed sanctions on a network of five entities and one individual for allegedly enabling payments between Russia and North Korea, the Treasury Department said.

The entities and the individual are based in Russia and the Georgian region of South Ossetia, the department said in a news release. They are accused of actions that “supported ongoing efforts to establish illicit payment mechanisms” between Russia and the North Korea.

"Today's action holds accountable parties that have assisted [North Korea] and Russian sanctions evasion," the Treasury Department said.

Western powers have accused cash-strapped North Korea of selling ammunition to Russia in defiance of sanctions over the more than 30-month-old war in Ukraine, and North Korea has recently bolstered military ties with Russia.

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President Vladimir Putin made a rare visit to Pyongyang in June and signed a "comprehensive strategic partnership" that calls for mutual assistance in the event of an attack by a third country.

North Korean leader Kim Jong Un, who met with Putin, said the agreement opened a new era of cooperation. Kim made further pledges to deepen ties with Russia after meeting last week with visiting Russian security chief Sergei Shoigu.

The new sanctions announced on September 19 expose how Putin's government uses illegal financial schemes to help North Korea access the international banking system in violation of UN Security Council sanctions, the Treasury Department said.

The announcement also “underscores our significant concern” over efforts by Russia and North Korea to deepen financial cooperation in violation of UN resolutions, said Acting Undersecretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith.

The United States has previously sanctioned many of the entities and individuals providing assistance to North Korea's ballistic missile program. International sanctions against North Korea over Pyongyang's nuclear program were imposed after its first nuclear test in 2006.