U.S. warns North Korea against new missile test, plays down talks

U.S. Ambassador to the United Nations Nikki Haley speaks at UN headquarters in New York, U.S., January 2, 2018

By Rodrigo Campos and Christine Kim

UNITED NATIONS/SEOUL (Reuters) – The U.S. ambassador to the United Nations, Nikki Haley, warned North Korea on Tuesday against staging another missile test and said Washington would not take any talks between North and South Korea seriously if they did not do something to get Pyongyang to give up its nuclear weapons.

Haley told reporters the United States was hearing reports that North Korea might be preparing to fire another missile.

“I hope that doesn’t happen. But if it does, we must bring even tougher measures to bear against the North Korean regime,” Haley said.

South Korea on Tuesday offered talks with North Korea next week, amid a tense standoff over Pyongyang’s nuclear and missile programs, after North Korean leader Kim Jong Un said in a New Year’s Day speech that he was “open to dialogue” with Seoul.

Kim also said he was open to the possibility of North Korean athletes taking part in Winter Olympics South Korea hosts next month.

At the same time, he stressed that his country would push ahead with “mass producing” nuclear warheads in defiance of U.N. sanctions and that he had a nuclear button on his desk capable of launching missiles at the United States.

U.S. President Donald Trump responded to Kim in a Twitter post on Tuesday: “Will someone from his depleted and food starved regime please inform him that I too have a Nuclear Button, but it is a much bigger & more powerful one than his, and my Button works!”

Haley said the United States would not take talks seriously if they did not take steps toward banning North Korea’s nuclear weapons.

“North Korea can talk to anyone they want, but the U.S. is not going to recognize it or acknowledge it until they agree to ban the nuclear weapons that they have,” she said.

Haley gave no details of the missile test preparations.

Another U.S. official, who spoke on condition of anonymity, said there were indications that could point toward a potential missile launch “sooner rather than later,” but cautioned that such signs had been seen in the past and no test had resulted.

‘DRIVE A WEDGE’

U.S. State Department spokeswoman Heather Nauert said North Korea might be “trying to drive a wedge of some sort” between the United States and South Korea and added that while it was up to Seoul to decide who it talked to: “We are very skeptical of Kim Jong Un’s sincerity in sitting down and having talks.”

Trump, who has led a global drive to pressure North Korea through sanctions to give up development of nuclear-tipped missiles capable of hitting the United States, earlier held back judgment on Pyongyang’s offer to talk, saying on Twitter:

“Rocket man now wants to talk to South Korea for first time. “Perhaps that is good news, perhaps not – we will see!”

Trump has frequently derided Kim as “rocket man.” The U.S. president said sanctions and other pressures were starting to have a big impact on North Korea.

Kim and Trump have exchanged fiery barbs in the last year and the U.S. president has warned that the United States would have no choice but to “totally destroy” North Korea if forced to defend itself or its allies.

North Korea regularly threatens to destroy the United States, South Korea and Japan and tested its most powerful intercontinental ballistic missile in November, which it said was capable of delivering a warhead anywhere in the United States.

South Korea’s Unification Minister Cho Myong-gyon said the offer for high-level talks next Tuesday had been discussed with the United States. Nauert said she was not aware if the matter had been discussed in advance of the South Korean response.

Cho suggested the talks be held at the border village of Panmunjom and said they should be focused on North Korea’s participation at the Olympics, but other issues would likely arise, including the denuclearisation of North Korea.

“I repeat: The government is open to talking with North Korea, regardless of time, location and form,” Cho said.

Should the talks be held, it would be the first such dialogue since a vice-ministerial meeting in December 2015.

South Korean President Moon Jae-in welcomed Kim’s New Year address and asked his government to move as quickly as possible to bring North Korea to the Olympics, but he stressed that an improvement in inter-Korean relations “cannot go separately with resolving North Korea’s nuclear program”.

China, which has persistently urged a return to talks to ease tensions, said recent positive comments from North and South Korea were a good thing.

“China welcomes and supports North Korea and South Korea taking earnest efforts to treat this as an opportunity to improve mutual relations, promote the alleviation of the situation on the Korean peninsula and realize denuclearisation on the peninsula,” Foreign Ministry spokesman Geng Shuang said.

(Reporting by Christine Kim, Jane Chung and Hyonhee Shin in Seoul, Michael Martina in Beijing, Doina Chiacu, David Brunnstrom, David Alexander and Arshad Mohammed in Washington, and Rodrigo Campos at the United Nations; Editing by Andrew Hay, Alistair Bell and Lisa Shumaker)

Russian tankers fueled North Korea via transfers at sea

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

By Guy Faulconbridge, Jonathan Saul and Polina Nikolskaya

LONDON/MOSCOW (Reuters) – Russian tankers have supplied fuel to North Korea on at least three occasions in recent months by transferring cargoes at sea, according to two senior Western European security sources, providing an economic lifeline to the secretive Communist state.

The sales of oil or oil products from Russia, the world’s second biggest oil exporter and a veto-wielding member of the United Nations Security Council, breach U.N. sanctions, the security sources said.

The transfers in October and November indicate that smuggling from Russia to North Korea has evolved to loading cargoes at sea since Reuters reported in September that North Korean ships were sailing directly from Russia to their homeland.

“The Russian vessels made transfers at sea to the North Koreans,” the first security source, who spoke on condition of anonymity, told Reuters. The source said the transfers of oil or oil products took place on several occasions and were a breach of sanctions.

A second source, who independently confirmed the existence of the Russian ship-to-ship fuel trade with North Korea, said there was no evidence of Russian state involvement in the latest transfers.

“There is no evidence that this is backed by the Russian state but these Russian vessels are giving a lifeline to the North Koreans,” the second European security source said.

In comments carried by Russia’s RIA Novosti state news agency on Saturday, the Russian Foreign Ministry said the country was observing sanctions against North Korea.

The two security sources cited naval intelligence and satellite imagery of the vessels operating out of Russian Far Eastern ports on the Pacific but declined to disclose further details to Reuters, saying it was classified.

The Russian Customs Service declined to comment when asked on Wednesday if Russian ships had supplied fuel to North Korean vessels. The owner of one ship accused of smuggling oil to North Korea denied any such activity.

SATELLITE DATA

The U.S. State Department, in a statement, called on Russia and other U.N. members to “strictly implement” sanctions on North Korea and to work “more closely together to shut down U.N.-prohibited activities, including ship-to-ship transfers of refined petroleum and the transport of coal from North Korea”.

The latest report came as China, responding on Friday to criticism from U.S. President Donald Trump, denied it had illicitly shipped oil products to North Korea.

North Korea relies on imported fuel to keep its struggling economy functioning. It also requires oil for its intercontinental ballistic missile and nuclear program that the United States says threatens the peace in Asia.

“The vessels are smuggling Russian fuel from Russian Far Eastern ports to North Korea,” said the first security source, who spoke on condition of anonymity.

Reuters was unable to independently verify that the vessels had transferred fuel to North Korean vessels, whether the Russian state knew about the sales or how many Russian vessels were involved in the transfers. It was also unclear how much fuel may have been smuggled.

Ship satellite positioning data consulted by Reuters and available on Reuters Eikon shows unusual movements by some of the Russian vessels named by the security sources including switching off the transponders which give a precise location.

The security sources said the Russian-flagged tanker Vityaz was one vessel that had transferred fuel to North Korean vessels.

The Vityaz left the port of Slavyanka near Vladivostok in Russia on Oct. 15 with 1,600 tonnes of oil, according to Russian port control documents.

Documents submitted by the vessel’s agent to the Russian State Port Control authority showed its destination as a fishing fleet in the Japan Sea. Shipping data showed the vessel switched off its transponder for a few days as it sailed into open waters.

According to the European security sources, the Vityaz conducted a ship-to-ship transfer with the North Korean Flagged Sam Ma 2 tanker in open seas during October.

Reuters could not independently verify the transfer as ship tracking data showed that the Sam Ma 2 had turned off its transponder from the start of August.

The owner of the Russian vessel denied any contact with North Korean vessels but also said it was unaware that the vessel was fuelling fishing boats.

OIL PRODUCTS

Yaroslav Guk, deputy director of the tanker’s owner, Vladivostok-based Alisa Ltd, said the vessel had no contacts with North Korean vessels.

“Absolutely no, this is very dangerous,” Guk told Reuters by telephone. “It would be complete madness.”

When contacted a second time, Guk said the vessel did not have any contacts with North Korean ships and that he would not answer further questions.

An official at East Coast Ltd, the vessel’s transport agent, declined to comment.

Two other Russian flagged tankers made similar journeys between the middle of October and November, leaving from the ports of Slavyanka and Nakhodka into open seas where they switched off their transponders, shipping data showed.

In September, Reuters reported that at least eight North Korean ships that left Russia loaded with fuel this year headed for their homeland despite declaring other destinations, a ploy that U.S. officials say is often used to undermine sanctions.

A Russian shipping source with knowledge of Far Eastern marine practices said North Korean vessels had stopped loading fuel in Russia’s Far Eastern ports but that fuel is delivered at sea by tankers using ship-to-ship transfers, or even by fishing vessels.

China on Friday denied reports it had been illicitly selling oil products to North Korea in violation of U.N. sanctions, after U.S. President Donald Trump said he was unhappy that China had allowed oil to reach the isolated nation.

China’s denial came a day after it blocked a U.S. effort at the United Nations to blacklist six ships Washington believes had engaged in illicit trade with North Korea, a U.N. Security Council diplomat said.

According to documents seen by Reuters this month, the United States had proposed that the U.N. Security Council blacklist 10 ships for illicit trade with North Korea.

It accused the vessels of “conducting illegal ship-to-ship transfers of refined petroleum products to North Korean vessels or illegally transporting North Korean coal to other countries for exports.”

Three North Korean ships among the 10 were blacklisted, along with a Panama-registered vessel.

(Additional reporting by David Brunnstrom in Washington, and Gabrielle Tetrault-Farber in Moscow; Editing by Giles Elgood, Leslie Adler and Alison Williams)

South Korea seizes second ship suspected of providing oil to North Korea

The Lighthouse Winmore, a Hong Kong-flagged vessel suspected of transferring oil to North Korea in defiance of international sanctions, is seen in the sea off Yeosu, South Korea December 29, 2017.

By Yuna Park and Hyunjoo Jin

SEOUL (Reuters) – South Korean authorities have seized a Panama-flagged vessel suspected of transferring oil products to North Korea in violation of international sanctions, a customs official said on Sunday.

The seizure was the second to be revealed by South Korea within a few days, as the United Nations steps up efforts to squeeze essential oil supplies to the reclusive North following its nuclear or ballistic missile tests.

The ship, KOTI, was seized at Pyeongtaek-Dangjin port, the official told Reuters, without elaborating, due to the sensitivity of the issue. The port is on the west coast, south of Incheon.

A marine official also confirmed the seizure, which he said was done “recently”.

The KOTI’s estimated time of arrival at the port was Dec. 19, according to VesselFinder Ltd., a tracking service provider,

The ship can carry 5,100 tonnes of oil and has a crew mostly from China and Myanmar, Yonhap News Agency reported, adding that South Korea’s intelligence and customs officials are conducting a joint probe into the vessel.

A Foreign Ministry spokesman confirmed the probe, declining to provide details.

“The government has been in close consultations with related countries and ministries to thoroughly implement the sanctions by the U.N. Security Council,” the spokesman said.

PROPOSED BLACKLISTING

On Friday, South Korea said that in late November it seized the Hong Kong-flagged Lighthouse Winmore, which is suspected of transferring as much as 600 tons of oil to the North Korea-flagged Sam Jong 2.

The U.N. Security Council last month unanimously imposed new sanctions on North Korea for a recent intercontinental ballistic missile test, seeking to limit its access to refined petroleum products and crude oil.

The United States has also proposed that the United Nations Security Council blacklist 10 ships for transporting banned items from North Korea, according to documents seen by Reuters on Tuesday.

The Lighthouse Winmore is one of the 10 ships proposed to be blacklisted. The KOTI does not seem to be included on the list.

On Thursday, China blocked a U.S. effort at the United Nations to blacklist six foreign-flagged ships, a U.N. Security Council diplomat said.

China’s Foreign Ministry, responding to a question from Reuters on the blocking, said Beijing always fully and strictly implemented Security Council resolutions.

“At the same time, any measures taken by the Security Council must have a basis in conclusive and actual proof. China will continue to participate in the work of the relevant Security Council sanctions committee on this principle,” it said in a short statement, without elaborating.

China also denied reports it had been illicitly selling oil products to North Korea in defiance of U.N. sanctions, after U.S. President Donald Trump said he was unhappy that China had allowed oil to reach the isolated nation.

Russian tankers have supplied fuel to North Korea on at least three occasions in recent months by transferring cargoes at sea, breaching U.N. sanctions, sources told Reuters.

(Reporting by Yuna Park and Hyunjoo Jin; Additional reporting by Hyonhee Shin in SEOUL and Ben Blanchard in BEIJING; Editing by Kim Coghill and Richard Borsuk)

South Korea offers talks with defiant North ahead of Olympics

People look toward the north through a barbed-wire fence near the militarized zone separating the two Koreas, in Paju, South Korea, December 21,

By Christine Kim

SEOUL (Reuters) – South Korea on Tuesday offered talks with North Korea amid a standoff over its weapons programs, a day after North Korean leader Kim Jong Un said he was open to negotiations but that his country would push ahead with “mass producing” nuclear warheads.

The offer for high-level talks next Tuesday had been discussed with the United States, the South’s unification minister said, while a decision on whether to push back a massive joint military drill between South Korea and the United States until after the Winter Olympics was pending.

Tension has been rising over North Korea’s nuclear and missile programs, which it pursues in defiance of years of U.N. Security Council resolutions, with bellicose rhetoric coming from both Pyongyang and the White House. The North sees the regular war drills between the South and the United States as preparations for war.

“We look forward to candidly discussing interests from both sides face-to-face with North Korea along with the North’s participation in the Pyeongchang Winter Olympics,” Unification Minister Cho Myong-gyon told reporters.

“I repeat, the government is open to talking with North Korea, regardless of time, location and form.”

Cho said he expects the dialogue at the border village of Panmunjom, if it happens, to be focused on North Korea’s participation at the Olympics in February, but other issues would likely arise, including the decentralization of North Korea.

Should the talks be held on Jan. 9, it would be the first such dialogue since a vice-ministerial meeting in December 2015.

The offer landed after a New Year’s Day speech by Kim who said he was “open to dialogue” with Seoul, and for North Korean athletes to possibly take part in the Winter Games, but he persistently declared North Korea a nuclear power.

After welcoming Kim’s address, South Korean President Moon Jae-in had asked his government earlier in the day to move as quickly as possible to bring North Korea to the Olympics.

Chinese Foreign Ministry spokesman Geng Shuang said the recent positive comments from both sides about improving relations, and Kim’s remarks about participating in the upcoming Olympics, were a “good thing”.

“China welcomes and supports North Korea and South Korea taking earnest efforts to treat this as an opportunity to improve mutual relations, promote the alleviation of the situation on the Korean peninsula and realize denuclearization on the peninsula.”

“DEEP BREATH” NEEDED

Chun Yung-woo, a former South Korean national security adviser, said Seoul should have taken more time before reacting to Kim’s comments.

“I regret the government had even lost the flexibility to spend one day or two taking a deep breath and meticulously analyzing Kim Jong Un’s ulterior motive before hastily issuing a welcoming statement,” he said.

“The government will have to strive more to come up with a countermeasure not to get caught in a trap set by Kim Jong Un.”

Choi Moon-soon, governor of Gangwon Province where the Olympics are to be held next month, has proposed South Korea send cruise ships to bring North Korean athletes and officials to Pyeongchang, according to South Korean media.

Choi met North Korean sports official Mun Woong in China on Dec. 18 on the sidelines of a international youth football tournament where North and South Korea soccer teams competed, the Dong-A Ilbo newspaper reported.

The governor did not immediately respond to a request by Reuters for comment.

This week’s exchanges follow a year dominated by fiery threats form Kim and U.S. President Donald Trump who vowed to destroy North Korea if threatened, even as U.S. diplomats pushed for a diplomatic solution.

North Korea, which regularly threatens to destroy the United States, South Korea and Japan, tested its most powerful intercontinental ballistic missile in November, which it said was capable of delivering a warhead to anywhere in the United States.

Kim said in a New Year’s Day speech on Monday he would consider sending a delegation to the Olympics.

“North Korea’s participation in the Winter Games will be a good opportunity to showcase the national pride and we wish the Games will be a success. Officials from the two Koreas may urgently meet to discuss the possibility,” Kim said.

North Korea would focus in 2018 on “mass-producing nuclear warheads and ballistic missiles for operational deployment”.

“The whole territory of the U.S. is within the range of our nuclear strike and a nuclear button is always on the desk of my office and this is just a reality, not a threat,” he said, while emphasizing that the weapons would only be used if North Korea was threatened.

The U.S. State Department did not respond to a requests for comment on Kim’s address, but analysts said it was an attempt to weaken the U.S.-South Korean alliance.

The Commerce Ministry in China, North Korea’s lone major ally, also said it will continue to fully implement U.N. sanctions on North Korea.

Trump said on Twitter last week that China has been “caught” allowing oil into North Korea and said such moves would prevent “a friendly solution” to the crisis.

(Reporting by Christine Kim; Additional reporting by Jane Chung and Hyonhee Shin in Seoul, and Michael Martina in Beijing; Editing by Nick Macfie)

After Trump criticism, China denies selling oil illicitly to North Korea

: A Chinese flag is seen in front of the Friendship bridge over the Yalu River connecting the North Korean town of Sinuiju and Dandong in China's Liaoning Province on April 1, 2017.

By Philip Wen and David Brunnstrom

BEIJING/WASHINGTON (Reuters) – China on Friday denied reports it has been illicitly selling oil products to North Korea after U.S. President Donald Trump said he was not happy that China had allowed oil to reach the isolated nation.

Trump said on Twitter the previous day that China had been “caught” allowing oil into North Korea and that would prevent “a friendly solution” to the crisis over North Korea’s nuclear and missile programs that it conducts in defiance of heavy U.N. Security Council sanctions.

“I have been soft on China because the only thing more important to me than trade is war,” Trump said in a separate interview with The New York Times.

South Korea’s Chosun Ilbo newspaper this week quoted South Korean government sources as saying that U.S. spy satellites had detected Chinese ships transferring oil to North Korean vessels about 30 times since October.

U.S. officials have not confirmed details of this report.

Chinese Foreign Ministry spokeswoman Hua Chunying told reporters she had noted recent media reports including suggestions a Chinese vessel was suspected of transporting oil to a North Korean vessel on Oct. 19.

“The Chinese side has conducted immediate investigation. In reality, the ship in question has, since August, not docked at a Chinese port and there is no record of it entering or leaving a Chinese port,” Hua said.

She said she was not aware if the vessel had docked at the port in other countries but the relevant media reports “did not accord with facts”.

“China has always implemented U.N. Security Council resolutions pertaining to North Korea in their entirety and fulfils its international obligations. We never allow Chinese companies and citizens to violate the resolutions,” Hua said.

“If, through investigation, it’s confirmed there are violations of the U.N. Security Council resolutions, China will deal with them seriously in accordance with laws and regulations.”

In the New York Times interview, Trump explicitly tied his administration’s trade policy with China, North Korea’s lone major ally, to its perceived cooperation in resolving the North Korea standoff.

“When I campaigned, I was very tough on China in terms of trade. They made — last year, we had a trade deficit with China of $350 billion, minimum. That doesn’t include the theft of intellectual property, O.K., which is another $300 billion,” Trump said, according to a transcript of the interview.

“If they’re helping me with North Korea, I can look at trade a little bit differently, at least for a period of time. And that’s what I’ve been doing. But when oil is going in, I’m not happy about that.”

An official with the U.S. State Department said the U.S. government was aware of vessels engaged in such activity involving refined petroleum and coal.

“We have evidence that some of the vessels engaged in these activities are owned by companies in several countries, including China,” the official said, speaking on condition of anonymity.

The United States says the full cooperation of China, North Korea’s neighbor and main trading partner, is vital to the success of efforts to rein in North Korea, while warning that all options are on the table, including military ones, in dealing with it.

China has repeatedly said it is fully enforcing all resolutions against North Korea, despite suspicion in Washington, Seoul and Tokyo that loopholes still exist.

‘EVADING SANCTIONS’

South Korea said on Friday it had seized a Hong Kong-flagged ship suspected of transferring oil to North Korea.

A senior South Korean foreign ministry official said the ship, the Lighthouse Winmore, was seized when it arrived at a South Korean port in late November.

“It’s unclear how much oil the ship had transferred to North Korea for how long and on how many occasions, but it clearly showed North Korea is engaged in evading the sanctions,” the official told Reuters.

South Korea’s customs service concluded that the Lighthouse Winmore had loaded about 14,000 tons of Japanese refined petroleum products in South Korea on Oct. 11, reportedly bound for Taiwan, the official said.

But instead, it transferred as much as 600 tons to the North Korea-flagged Sam Jong 2 on Oct. 19 in international waters between China and the Korean peninsula, on the order of its charterer, Billions Bunker Group Corp., based in Taiwan, the ministry official said.

It was not immediately possible to find contact information for the company.

A spokesman for Taiwan’s presidential office, Alex Huang, said the company was not incorporated in Taiwan.

“As a responsible member of international society, Taiwan will continue to fully comply with all U.N. sanctions against North Korea, in order to support peace and stability in the region,” he said in a statement.

The Hong Kong government said it was “liaising with the Korean parties concerned to obtain further information about the incident, and will take appropriate actions as necessary”.

Employees at the office of Lighthouse Ship Management, the ship’s registered manager, in the Chinese port city of Guangzhou, declined to comment and said they had no knowledge of the situation.

China’s foreign ministry spokeswoman said she did not have any information about the matter.

Both ships were among 10 vessels that the United States had proposed that the U.N. Security Council should blacklist for transporting banned items from North Korea, documents seen by Reuters this month showed.

China and Russia subsequently asked for more time to consider the U.S. proposal.

Ship tracking data in Thomson Reuters Eikon shows that the Lighthouse Winmore has mainly been doing supply runs between China and Taiwan since August.

Prior to that, it was active between India and the United Arab Emirates. In October, when it allegedly transferred petroleum products to the North Korean ship, the Lighthouse Winmore had its tracking transponder switched off.

The Trump administration has led a drive to step up global sanctions on North Korea in response to its efforts to develop nuclear-tipped missiles capable of hitting the United States.

The U.N. Security Council last week unanimously imposed new sanctions on North Korea for a recent intercontinental ballistic missile (ICBM) test, seeking to further limit its access to refined petroleum products and crude oil.

The U.S.-drafted U.N. resolution seeks to ban nearly 90 percent of refined petroleum exports to North Korea by capping them at 500,000 barrels a year.

It also caps crude oil supplies to North Korea at 4 million barrels a year and commits the Security Council to further cuts if North Korea conducts another nuclear or intercontinental ballistic missile test.

In September, the Security Council put a cap of 2 million barrels a year on refined petroleum products exports to North Korea.

(Additional reporting by Hyonhee Shin and Josh Smith in Seoul, Venus Wu and Tyrone Siu in Hong Kong and Brenda Goh in Shanghai; Writing by Ben Blanchard; Editing by Robert Birsel and Nick Macfie)

Trump says ‘disappointed’ China allowing oil into North Korea

U.S. President Donald Trump gives a thumbs-up to reporters as he boards Air Force One for travel to Palm Beach from Joint Base Andrews, Maryland, U.S., December 22, 2017

WASHINGTON (Reuters) – U.S. President Donald Trump on Thursday said he was “very disappointed that China is allowing oil to go into North Korea” and that such moves would prevent “a friendly solution” to the crisis over Pyongyang’s nuclear program.

“Caught RED HANDED – very disappointed that China is allowing oil to go into North Korea. There will never be a friendly solution to the North Korea problem if this continues to happen!” Trump wrote in a post on Twitter.

China earlier on Thursday said there had been no U.N. sanction-breaking oil sales by Chinese ships to North Korea after a South Korea newspaper said Chinese and North Korean vessels had been illicitly linking up at sea to get oil to North Korea.

(Reporting by Susan HeaveyEditing by Chizu Nomiyama)

U.S. sanctions North Korean missile experts, Russia offers to mediate

People watch a television broadcast of a news report on North Korea firing what appeared to be an intercontinental ballistic missile (ICBM) that landed close to Japan, in Seoul, South Korea, November 29, 2017

By David Brunnstrom and Denis Pinchuk

WASHINGTON/MOSCOW (Reuters) – The United States announced sanctions on two of North Korea’s most prominent officials behind its ballistic missile program on Tuesday, while Russia reiterated an offer to mediate to ease tension between Washington and Pyongyang.

The new U.S. steps were the latest in a campaign aimed at forcing North Korea – which has defied years of multilateral and bilateral sanctions – to abandon a weapons program aimed at developing nuclear-tipped missiles capable of hitting the United States.

“Treasury is targeting leaders of North Korea’s ballistic missile programs, as part of our maximum pressure campaign to isolate (North Korea) and achieve a fully denuclearized Korean Peninsula,” Treasury Secretary Steven Mnuchin said in a statement.

The move followed new United Nations sanctions announced last Friday in response to North Korea’s Nov. 29 test of an ICBM that Pyongyang said put all of the U.S. mainland within range of its nuclear weapons. Those sanctions sought to further limit North Korea’s access to refined petroleum products and crude oil and its earnings from workers abroad.

North Korea declared the U.N. steps to be an act of war and tantamount to a complete economic blockade.

The standoff between the United States and North Korea has raised fears of a new conflict on the Korean peninsula, which has remained in a technical state of war since the 1950-53 Korean War ended in an armistice, not a peace treaty.

The United States has said that all options, including military ones, are on the table in dealing with North Korea. It says it prefers a diplomatic solution, but that North Korea has given no indication it is willing to discuss denuclearization.

LEADING EXPERTS

The U.S. Treasury named the targeted officials as Kim Jong Sik and Ri Pyong Chol. It said Kim was reportedly a major figure in North Korea’s efforts to switch its missile program from liquid to solid fuel, while Ri was reported to be a key official in its intercontinental ballistic missile (ICBM) development.

The largely symbolic steps block any property or interests the two might have within U.S. jurisdiction and prohibit any dealings by U.S. citizens with them.

With their ruling Workers Party, military and scientific credentials, the men are two of three top experts considered indispensable to North Korea’s rapidly developing weapons programs.

Photographs and television footage show that the men are clearly among North Korean leader Kim Jong Un’s favorites. Their behavior with him is sharply at variance with the obsequiousness of other senior aides, most of whom bow and hold their hands over their mouths when speaking to the young leader.

Ri is one of the most prominent aides, and likely represents the Workers Party on the missile program, experts say.

Born in 1948, Ri was partly educated in Russia and promoted when Kim Jong Un started to rise through the ranks in the late 2000s.

Ri has visited China once and Russia twice. He met China’s defense minister in 2008 as the air force commander and accompanied Kim Jong Il on a visit to a Russian fighter jet factory in 2011, according to state media.

Kim Jong Sik is a prominent rocket scientist who rose after playing a role in North Korea’s first successful launch of a rocket in 2012.

He started his career as a civilian aeronautics technician, but now wears the uniform of a military general at the Munitions Industry Department, according to experts and the South Korean government.

Many other details, including his age, are not known.

KREMLIN OFFER

On Tuesday, the Kremlin, which has long called for the United States and North Korea to negotiate, said it was ready to act as a mediator if the two sides were willing for it to play such a role.

“Russia’s readiness to clear the way for de-escalation is obvious,” Kremlin spokesman Dmitry Peskov told reporters.

Asked to comment on the offer, a spokesman for the U.S. State Department, Justin Higgins, said the United States “has the ability to communicate with North Korea through a variety of diplomatic channels”, and added:

“We want the North Korean regime to understand that there is a different path that it can choose, however it is up to North Korea to change course and return to credible negotiations.”

Russian Foreign Minister Sergei Lavrov, who made a similar offer on Monday, told U.S. Secretary of State Rex Tillerson in a phone call on Tuesday that “Washington’s aggressive rhetoric” and beefing up of its military presence in the region had heightened tension and was unacceptable, his ministry said.

Lavrov underscored the need for “the fastest move to the negotiating process from the language of sanctions”, it said.

Another U.S. State Department spokesman, Michael Cavey, said Washington remained open to talks, but the onus was on North Korea “to take sincere and meaningful actions toward denuclearization and refrain from further provocations.”

South Korea’s Unification Ministry forecast on Tuesday that North Korea would look to open negotiations with the United States next year while continuing to seek recognition as a de facto nuclear power.

The United States has stressed the need for all countries, especially Russia, and China – North Korea’s main trading partner – to fully implement sanctions, including by cutting off oil supplies.

According to Chinese customs data, China exported no oil products to North Korea in November, apparently going above and beyond U.N. sanctions imposed earlier in the year.

China also imported no North Korean iron ore, coal or lead in November, the second full month of those trade sanctions, the data showed.

China has not disclosed its crude exports to North Korea for several years, but industry sources say it still supplies about 520,000 tonnes, or 3.8 million barrels, a year to the country via an aging pipeline.

North Korea also sources some of its oil from Russia.

Trade between North Korea and China has slowed through the year, particularly after China banned coal purchases in February.

Chinese exports of corn to North Korea in November also slumped, down 82 percent from a year earlier to 100 tonnes, the lowest since January. Exports of rice plunged 64 percent to 672 tonnes, the lowest since March.

(Reporting by Denis Pinchuk and Vladimir Soldatkin in Moscow; Additional reporting by Susan Heavey in Washington; Writing by Polina Ivanova; Editing by Alistair Bell and James Dalgleish)

North Korean defectors may have been exposed to radiation, says South

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

By Yuna Park

SEOUL (Reuters) – At least four defectors from North Korea have shown signs of radiation exposure, the South Korean government said on Wednesday, although researchers could not confirm if they were was related to Pyongyang’s nuclear weapons program.

The four are among 30 former residents of Kilju county, an area in North Korea that includes the nuclear test site Punggye-ri, who have been examined by the South Korean government since October, a month after the North conducted its sixth and most powerful nuclear test, Unification Ministry spokesman Baik Tae-hyun told a news briefing.

They were exposed to radiation between May 2009 and January 2013, and all defected to the South before the most recent test, a researcher at the Korea Atomic Energy Research Institute, which carried out the examinations, told reporters.

North Korea has conducted six nuclear bomb tests since 2006, all in tunnels deep beneath the mountains of Punggye-ri, in defiance of U.N. Security Council resolutions and international condemnation.

The researcher cautioned that there were a number of ways people may be exposed to radiation, and that none of the defectors who lived had lived in Punggye-ri itself showed specific symptoms.

A series of small earthquakes in the wake of the last test – which the North claimed to be of a hydrogen bomb – prompted suspicions that it may have damaged the mountainous location in the northwest tip of the country.

Experts warned that further tests in the area could risk radioactive pollution.

After the Sept. 3 nuclear test, China’s Nuclear Safety Administration said it had begun emergency monitoring for radiation along its border with North Korea.

And in early December, a state-run newspaper in China’s Jilin province, which borders North Korea and Russia, published a page of “common sense” advice on how readers can protect themselves from a nuclear weapons attack or explosion.

Cartoon illustrations of ways to dispel radioactive contamination were also provided, such as using water to wash off shoes and using cotton buds to clean ears, as well as a picture of a vomiting child to show how medical help can be sought to speed the expulsion of radiation through stomach pumping and induced urination.

(Writing by Josh Smith; Editing by Nick Macfie)

China halts oil product exports to North Korea in November as sanctions bite

A North Korean iron ore mine, near the North Korean town of Musan is seen in this general view taken May 11, 2013.

By Ryan Woo and Muyu Xu

BEIJING (Reuters) – China exported no oil products to North Korea in November, Chinese customs data showed, apparently going above and beyond sanctions imposed earlier this year by the United Nations in a bid to limit petroleum shipments to the isolated country.

Tensions have flared anew over North Korea’s ongoing nuclear and missile programmes, pursued in defiance of years of U.N. resolutions. Last week, the U.N. Security Council imposed new caps on trade with North Korea, including limiting oil product shipments to just 500,000 barrels a year.

Beijing also imported no iron ore, coal or lead from North Korea in November, the second full month of the latest trade sanctions imposed by U.N.

China, the main source of North Korea’s fuel, did not export any gasoline, jet fuel, diesel or fuel oil to its isolated neighbour last month, data from the General Administration of Customs showed on Tuesday.

November was the second straight month China exported no diesel or gasoline to North Korea. The last time China’s jet fuel shipments to Pyongyang were at zero was in February 2015.

“This is a natural outcome of the tightening of the various sanctions against North Korea,” said Cai Jian, an expert on North Korea at Fudan University in Shanghai.

The tightening “reflects China’s stance”, he said.

Chinese Foreign Ministry spokeswoman Hua Chunying said she didn’t know any details about the oil products export situation.

“As a principle, China has consistently fully, correctly, conscientiously and strictly enforced relevant U.N. Security Council resolutions on North Korea. We have already established a set of effective operating mechanisms and methods,” she said at a regular briefing on Tuesday, without elaborating.

Since June, state-run China National Petroleum Corp (CNPC) [CNPET.UL] has suspended sales of gasoline and diesel to North Korea, concerned that it would not get paid for its goods, Reuters previously reported.

Beijing’s move to turn off the taps completely is rare.

In March 2003, China suspended oil supplies to North Korea for three days after Pyongyang fired a missile into waters between the Korean Peninsula and Japan.

It is unknown if China still sells crude oil to Pyongyang. Beijing has not disclosed its crude exports to North Korea for several years.

Industry sources say China still supplies about 520,000 tonnes, or 3.8 million barrels, of crude a year to North Korea via an aging pipeline. That is a little more than 10,000 barrels a day, and worth about $200 million a year at current prices.

North Korea also sources some of its oil from Russia.

TOTAL TRADE LESS THAN $400 MILLION

Chinese exports of corn to North Korean in November also slumped, down 82 percent from a year earlier to 100 tonnes, the lowest since January. Exports of rice plunged 64 percent to 672 tonnes, the lowest since March.

Trade between North Korea and China has slowed through the year, particularly after China banned coal purchases in February. In November, China’s trade with North Korea totalled $388 million, one of the lowest monthly volumes this year.

China has renewed its call on all countries to make constructive efforts to ease tensions on the Korean peninsula, urging the use of peaceful means to resolve issues.

But tensions flared again after North Korea on Nov. 29 said it had tested a new intercontinental ballistic missile that put the U.S. mainland within range of its nuclear weapons.

Meanwhile Chinese exports of liquefied petroleum gas to North Korea, used for cooking, rose 58 percent in November from a year earlier to 99 tonnes. Exports of ethanol, which can be turned into a biofuel, gained 82 percent to 3,428 cubic metres.

 

(Reporting by Muyu Xu and Ryan Woo; Additional reporting by Meng Meng, Hallie Gu, Christian Shepherd and Ben Blanchard; Editing by Kenneth Maxwell and Tom Hogue)

South Korea says delay in military drills aimed only at ensuring peaceful Olympics

South Korean and U.S. Marines take part in a winter military drill in Pyeongchang, South Korea, December 19, 2017. REUTERS/Kim Hong-Ji

By Josh Smith

SEOUL (Reuters) – South Korean officials said on Wednesday a proposed delay in military drills with the United States was aimed at ensuring a peaceful 2018 Winter Olympics, not ending the North Korean missile crisis, as relations with China suffered new setbacks.

South Korean President Moon Jae-in is seeking to soothe relations with North Korea, which is pursuing nuclear and missile programmes in defiance of U.N. sanctions, and with China, the North’s lone major ally, before the Games begin in South Korea in February.

China, which hosted years of on-again-off-again six-party talks to try to end the North Korea standoff, resumed some blocks on group tours to South Korea, industry sources said, and rebuked Seoul for firing warning shots at Chinese fishing boats

On Tuesday, Moon, who visited China last week, said he had proposed postponing major military drills with the United States until after the Games, a move his office said was designed to reassure athletes and spectators.

“This is confined to our efforts to host a peaceful Olympics,” an official from the presidential Blue House said. “We are only talking about the exercises which are supposed to take place during the Olympics and Paralympics.”

North Korea sees the regular joint exercises as preparation for war, while China is still angry about the deployment of a U.S. anti-missile system, commonly known as THAAD, by South Korea, whose powerful radar it fears could see deep inside its territory.

The South argues it needs THAAD to guard against the threat posed by North Korea, which regularly threatens to destroy South Korea, Japan and the United States.

For a graphic on North Korea’s missile launches, click http://tmsnrt.rs/2j2S5T3

The proposed delay in drills was discussed during a summit last week between Moon and Chinese President Xi Jinping, after the proposal had already been submitted to the Americans, the Blue House official said.

China and Russia have proposed a “freeze for freeze” arrangement under which North Korea would stop its nuclear and missile tests in exchange for a halt to the exercises. However, the official denied the proposed delay had anything to do with the freeze idea.

U.S. Secretary of State Rex Tillerson said in Ottawa on Tuesday he was unaware of any plans to “alter longstanding and scheduled and regular military exercises”.

North Korea has stepped up its missile and nuclear tests at an unprecedented rate this year, and any new provocation from the North would “inevitably have an impact” on the exercises, the Blue House official said.

“It is a display of the president’s strong message that North Korea must not conduct any provocation (during the Olympics),” the official told reporters.

South Korean and U.S. Marines take part in a winter military drill in Pyeongchang, South Korea, December 19, 2017. REUTERS/Kim Hong-Ji

South Korean and U.S. Marines take part in a winter military drill in Pyeongchang, South Korea, December 19, 2017. REUTERS/Kim Hong-Ji

“BIOLOGICAL EXPERIMENTS”

Japan’s Asahi newspaper reported on Wednesday, citing an unidentified person connected to South Korean intelligence, that North Korea was conducting biological experiments to test the possibility of loading anthrax-laden warheads on its intercontinental ballistic missiles.

The Asahi report said the U.S. government was aware of the tests, which were meant to ascertain whether the anthrax bacteria could survive the high temperatures that occur during warheads’ re-entry from space.

Reuters was unable to verify the report independently.

In a statement released by state media, North Korea’s Ministry of Foreign Affairs called reports it was developing biological weapons “nonsense” designed to provoke nuclear war.

The United States has given China a draft resolution for tougher U.N. sanctions on North Korea and is hoping for a quick vote on it by the U.N. Security Council, a Western diplomat said on Tuesday, however Beijing has yet to sign on.

When asked about the U.S. resolution at a press briefing on Wednesday, Chinese Foreign Ministry spokeswoman Hua Chunying would only say that China always takes a responsible and constructive attitude towards Security Council talks on North Korea.

The United States has also called on the Security Council to blacklist 10 ships for circumventing sanctions on North Korea. Hua said China had received the proposal from the United States.

WARNING SHOTS

China has resumed at least some restrictions on group tours into the South, South Korea’s inbound travel agency said. The restrictions were first in place last year as part of China’s retaliation over THAAD deployment.

“I was told from my boss this morning that our Chinese partners (based in Beijing and Shandong) said they won’t send group tourists to South Korea as of January,” the official from Naeil Tour Agency told Reuters by phone.

One source in China said the reason for reinstating the ban was to rein in overly aggressive tour operators who had been rolling out package deals to South Korea too quickly in the eyes of authorities.

Foreign ministry spokeswoman Hua told reporters she had not heard of a tourism ban, but she reiterated that Moon’s visit to Beijing was successful and that China has an open attitude towards exchanges and cooperation in all areas.

Beijing has never officially confirmed restrictions on tourism.

Three representatives at Beijing travel agencies told Reuters that they were not currently organising group tours to South Korea. One confirmed that the tourism administration had issued the notice, while a third said: “At the moment we have no group trips to South Korea.”

A travel agency in the northern province of Shandong also said it could not organise group trips. Three others said they could, but with restrictions such as on the number of people.

South Korea’s coast guard said on Wednesday it had fired around 250 warning shots on Tuesday to chase away a fleet of 44 Chinese boats fortified with iron bars and steel mesh that were fishing illegally in South Korean waters.

“The Chinese fishing boats sought to swarm around and collide with our patrol ship, ignoring the broadcast warnings,” the coast guard said in a statement.

China, which has in the past lodged diplomatic protests to South Korea over the use of force by its coast guard, expressed “serious concern” about the latest clash.

(For a graphic on rocket science, click http://tmsnrt.rs/2t6WEPL)

(Reporting by Dahee Kim, Hyonhee Shin, Heekyong Yang and Yuna Park in SEOUL, Tim Kelly in TOKYO, Adam Jourdan in SHANGHAI, and Pei Li, Gao Liangping and Ben Blanchard in BEIJING; Editing by Paul Tait and Nick Macfie)