The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) on December 16 imposed sanctions on 9 individuals and 7 entities that provided financial and military support to the DPRK. The U.S. State Department also today designated three targets related to the DPRK’s ballistic missile program. These actions reflect the DPRK’s escalating provocations and hostile military posture, which are heightening global tensions and destabilizing regional peace and security.
Points of attention
- US Treasury Department imposed sanctions on 9 individuals and 7 entities supporting the DPRK, reflecting escalating provocations and hostile military posture.
- Sanctions include targeting Russian companies supplying oil to the DPRK, adding a layer of confrontation and destabilization in the region.
- The adopted sanctions aim to stop illegal activities, maintain stability, and exert financial pressure on known violators such as Golden Triangle Bank, Korea Mandal Credit Bank, and Russian oil companies.
- North Korea's cooperation with Russia poses a threat to international security, fueling further development of WMD and missile programs, and supporting Russia's aggression in Ukraine.
- The US remains committed to disrupting facilitation networks enabling destabilizing activities, emphasizing the importance of international cooperation and strict enforcement measures.
US adopts new sanctions against Russia and North Korea
On October 31, 2024, the DPRK conducted its first intercontinental ballistic missile test since December 2023. On November 5, 2024, the DPRK launched at least seven short-range ballistic missiles off the eastern coast of the peninsula. . Revenues generated from foreign workers and state organizations fuel these launches and the further development of the DPRK's WMD and ballistic missile programs.
North Korea has also provided Russia with significant military support for its war against Ukraine. Since October, it has provided Russia with more than 11,000 troops, who are currently training for deployment against Ukraine, and has sent significant quantities of missiles and ammunition to the Russian military to replenish its dwindling stockpiles.
The Kim Jong-un regime’s continued provocative actions, including its recent test of an intercontinental ballistic missile and increased military support for Russia, undermine regional stability and support Putin’s ongoing aggression in Ukraine. The United States remains committed to disrupting the illicit procurement and facilitation networks that enable these destabilizing activities.
Who is on the new sanctions lists?
Golden Triangle Bank (GTB) is one of the largest financial institutions in the Rason Special Economic Zone of the DPRK. As a state-owned company of the DPRK government, GTB is used by foreigners to exchange foreign currency for local currency for use in the DPRK.
Korea Mandal Credit Bank (KMCB) is a financial institution headquartered in Pyongyang that maintains a network of representatives operating throughout China. KMCB has facilitated the procurement of goods for organizations supporting the DPRK’s WMD program.
Choe Chol-ryong (Choe) is a representative of the US-designated Korean Kwangson Banking Corporation (KKBC) in Dandong, China. In this capacity, Choe was involved in the smuggling of cash between China and the DPRK.
Kim Myung-jin (Kim) is a representative of the US-designated Korea Daesong Bank (KDB) in Beijing, China. Kim is the DPRK’s top financial representative and plays a key role in facilitating Pyongyang’s illicit financial activities outside the DPRK.
Ri Chang-ho (Ri) is the head of the North Korean Main Intelligence Bureau (RGB) and one of the DPRK generals known to accompany thousands of DPRK troops deployed to Russia to support Russia’s war in Ukraine. As head of the RGB, Ri has engaged in lucrative activities and raised funds to support the DPRK’s weapons of mass destruction activities.
Ju Chang-il (Ju) is the director of the Propaganda and Agitation Department (PAD) of the Workers' Party of Korea (WPK). The PAD is involved in or responsible for censorship of the North Korean government, and is the main agency responsible for both newspaper and broadcast censorship.
Kim Yong-Bok is a senior general in the Korean People's Army, who is accompanying DPRK troops sent to Russia.
Pak Jong-jong (Pak) is the vice chairman of the WPK Central Military Commission based in the DPRK. In his role, he has participated in public events related to the DPRK's ballistic missile program, including a tour of a weapons factory, a submarine launch, and an official visit to Russia.
Im Song Jin (Im) is a professor of physics at Kim Il Sung University. He is listed under EO 13810 as a North Korean national, including a North Korean national who has engaged in commercial activities that generate revenue for the Government of North Korea or the WPK.
Kim Geum Chol is the president of Kim Il Sung Military University, the main military educational institution of the DPRK.
Ro Kwang Chol (Ro) is the current Minister of National Defense of the DPRK, who assumed this position in October 2024.
The US sanctions list also includes Russian companies that supply oil to the DPRK:
Vostok Trading LLC (“Vostok”), DV Inc LLC (“DV Inc”), and Novosibirskoblgaz LLC are Russian foreign trade companies that shipped thousands of tons of oil and gas to the DPRK starting in 2022 and continuing until at least April 2024.
JSC "Sibregiongaz" is the parent company in Russia and 100% owner of LLC "Novosibirskoblgaz".
Okryu Trading Company (Okryu) is a North Korean foreign trade company that has received thousands of tons of oil from Russia. Okryu is designated under EO 13810 to operate in North Korea's transportation sector.
As a result of today's action, all property and interests in the property of the individuals described above that are in the United States or owned or controlled by U.S. persons are blocked.
Financial institutions and other persons who engage in certain transactions or activities with sanctioned entities and individuals may be subject to sanctions or enforcement action.
EU seeks easing of sanctions against Russia
What is important to understand is that Gazprombank plays a key role in ensuring the supply of Russian natural gas to the European Union countries.
As British journalists have learned, official Brussels and Washington are currently discussing the type and scope of mitigation measures.
Negotiations between the parties began after some European states and companies warned that sanctions against Gazprombank would pose a risk to the security of gas supplies.
In addition, it is noted that the share of Russian pipeline gas in EU imports fell from over 40% in 2021 to about 8% in 2023.
