US Slaps New Sanctions on Chinese and Russian Entities

Elias Hubbard
August 22, 2017

'We are taking actions consistent with United Nations sanctions to show that there are consequences for defying sanctions and providing support to North Korea, and to deter this activity in the future, ' Mnuchin added.

President Donald Trump and Pyongyang have subsequently engaged in a war of words, with the president warning North Korea further threats would be met with "fire and fury like the world has never seen".

Three Russians who run a company that exports oil to North Korea also were targeted, administration officials said.

Trump has urged Beijing, North Korea's only major ally, to bring greater pressure to bear in reigning in the reclusive state's nuclear efforts, suggesting that the United States may offer concessions on trade in return.

The sanctions target 16 Chinese and Russian individuals and companies, with the bulk targeting Chinese entities which have been buying and selling oil and coal with North Korea, or offering related banking services to facilitate these transactions.

Dandong Rich Earth Trading Co. In complaints filed Tuesday in federal court in the District of Columbia, they accused the companies of laundering dollars through USA accounts on behalf of sanctioned entities in North Korea.

North Korea generates about $1 billion a year from the coal trade, according to the Treasury, which singled out three Chinese coal companies it said was responsible for importing nearly a half-billion dollars in North Korean coal between 2013 and 2016. Any property of the designated persons in the possession of US citizens or inside the country will be blocked, and those in the United States are generally prohibited from dealing with them.

The U.S. -drafted resolution banned North Korean exports of coal, iron, iron ore, lead, lead ore and seafood.

Federal prosecutors in the United States are reportedly stepping up measures against Chinese firms which are involved with North Korea.

Federal prosecutors suspect the company may be involved in money laundering in support of Pyongyang, according to The Wall Street Journal. At least one Russian company and four Russian nationals were also targeted in the crackdown.

Other reports by Click Lancashire

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