Tag Archives: Sanctions

U.S. House approves tighter North Korea sanctions

FILE PHOTO - A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva October 2, 2014. REUTERS/Denis Balibouse/File Photo

WASHINGTON (Reuters) – The U.S. House of Representatives overwhelmingly approved legislation on Thursday to tighten sanctions on North Korea by targeting its shipping industry and companies that do business with the reclusive state.

The vote was 419 to 1.

Supporters said the legislation was intended to send a strong message to North Korea, amid international concern over the escalation of its nuclear program.

The measure would have to be approved by the Senate before it could be sent to the White House for President Donald Trump to sign into law.

Although legislation addressing North Korea has been introduced in the Senate, there was no immediate word on when or if the Senate might take up a bill.

Any new U.S. sanctions against North Korea would likely affect China, the North’s most important trade partner.

While China has been angered by North Korea’s nuclear and missile tests, it has signed up for increasingly tough U.N. sanctions against it, and says it is committed to enforcing them.

Asked about the latest U.S. legislation, Chinese Foreign Ministry spokesman Geng Shuang reiterated that China opposed other countries using their own domestic law to impose unilateral sanctions.

With the situation tense on the Korean Peninsula, all sides need to exercise restraint and not irritate each other to avoid the situation worsening, he said.

(Reporting by Patricia Zengerle; Additional reporting by Ben Blanchard in Beijing; Editing by Leslie Adler)

After North Korea criticism, China says wants to be good neighbor

North Korean leader Kim Jong Un attends a performance held for participants of the ruling party's party meeting, December 2016. KCNA/via Reuters

BEIJING (Reuters) – China said on Thursday it wants to be good neighbors with North Korea, after the isolated country’s state news agency published a rare criticism of Chinese state media commentaries calling for tougher sanctions over the North’s nuclear program.

The United States has urged China, North Korea’s only major ally, to do more to rein in the North’s nuclear and missile programs, which have prompted an assertive response from the Trump administration, warning that an “era of strategic patience” is over.

A commentary carried by North Korea’s KCNA news agency referred to recent commentaries in China’s People’s Daily and Global Times newspapers, which it said were “widely known as media speaking for the official stand of the Chinese party and government”.

In Beijing, Foreign Ministry spokesman Geng Shuang said China’s position was consistent and clear.

“China’s position on developing friendly, good-neighborly relations with North Korea is also consistent and clear,” Geng told reporters, in response to a question about the KCNA commentary.

China was unswervingly devoted to the denuclearization of the peninsula and maintaining peace and security and resolving the issue through talks, Geng added.

The WeChat account of the overseas edition of the People’s Daily, in its reaction to the KCNA piece, said it was clear that North Korea’s nuclear and missile activities were a threat to China.

“North Korea has not left the Cold War behind and does not want to, and is enmeshed in a web of its own spinning of antagonism between its enemies and itself,” it said.

China has repeatedly said that while it is happy to help arrange talks, it is ultimately up to the United States and North Korea to sort out their differences.

Diplomats say Washington and Beijing are negotiating a possible stronger U.N. Security Council response – such as new sanctions – to North Korea’s repeated ballistic missile launches in defiance of UN Security Council resolutions.

The KCNA commentary charged that the Chinese articles had attempted to shift the blame to Pyongyang for “deteriorated relations” between China and North Korea and U.S. deployment of strategic assets to the region.

It also accused China of “hyping up” damage caused by North Korean nuclear tests to China’s three northeastern provinces.

Chinese state media calls for North Korea to dismantle its nuclear program were “a wanton violation of the independent and legitimate rights, dignity and supreme interests” of North Korea and constituted “an undisguised threat to an honest-minded neighboring country which has a long history and tradition of friendship”, KCNA said.

The United States has sent a nuclear-powered aircraft carrier to Korean waters and a pair of strategic U.S. bombers flew training drills with South Korea and Japan in another show of strength this week.

“The reckless military provocation is pushing the situation on the Korean peninsula closer to the brink of nuclear war,” KCNA said on Tuesday.

Tension on the Korean peninsula has been high for weeks, driven by concern that North Korea might conduct its sixth nuclear test, also in defiance of U.N. Security Council resolutions.

(Reporting by Michael Martina; Writing by Ben Blanchard; Editing by Nick Macfie)

Exclusive: U.S. senators seek sanctions, other ways to address Venezuela crisis

Demonstrators run as they clash with police during a rally against Venezuela's President Nicolas Maduro in Caracas, Venezuela. REUTERS/Carlos Garcia Rawlins

By Patricia Zengerle

WASHINGTON (Reuters) – An influential group of Republican and Democratic U.S. senators will file sweeping legislation on Wednesday to address the crisis in Venezuela, including sanctioning individuals responsible for undermining democracy or involved in corruption, Senate aides said.

The bill would provide $10 million in humanitarian aid to the struggling country, require the State Department to coordinate a regional effort to ease the crisis, and ask U.S. intelligence to report on the involvement of Venezuelan government officials in corruption and the drug trade, according to a copy seen by Reuters.

It also calls on President Donald Trump to take all necessary steps to prevent Rosneft, Russia’s state oil company, from gaining control of any U.S. energy infrastructure.

Rosneft has been gaining ground in Venezuela as the country scrambles for cash. The Venezuelan state oil company, PDVSA, last year used 49.9 percent of its shares in its U.S. subsidiary, Citgo, as collateral for loan financing by Rosneft.

In total, Rosneft has lent PDVSA between $4 billion and $5 billion.

The measure comes as the international community has struggled to respond to deep economic crisis and street protests in the South American OPEC nation.

Some 29 people have been killed, more than 400 injured and hundreds more arrested since demonstrations against Venezuelan President Nicolas Maduro’s government began in April amid severe shortages of food and medicine, deep recession and hyper-inflation.

On Tuesday, Venezuela’s opposition blocked streets in the capital, Caracas, to denounce Maduro’s decision to create a “constituent assembly,” which critics said was a veiled attempt to cling to power by avoiding elections.

Senate aides said the bill sought to react to the crisis by working with countries across the Americas and international organizations, rather than unilaterally, while targeting some of the root causes of the crisis and supporting human rights.

U.S. officials have long been reluctant to be too vocal about Venezuela, whose leaders accuse Washington of being the true force behind opposition to the country’s leftist government.

PROMINENT SPONSORS

The lead sponsors of the legislation are Senator Ben Cardin, the senior Democrat on the Senate Foreign Relations Committee, and Senator Marco Rubio, the Republican chairman of the panel’s western hemisphere subcommittee and a vocal critic of Venezuela’s government.

Boosting its chances of getting through Congress, co-sponsors include Senator John Cornyn, the chamber’s No. 2 Republican, and Senator Dick Durbin, the No. 2 Democrat, as well as Republican Senator John McCain, the influential chairman of the Senate Armed Services Committee.

The bill has 11 sections, seeking to deal with the crisis with a broad brush.

Addressing corruption, it would require the U.S. State Department and intelligence agencies to prepare an unclassified report, with a classified annex, on any involvement of Venezuelan government officials in corruption and the drug trade.

The U.S. Treasury Department has in the past sanctioned Venezuelan officials or former officials, charging them with trafficking or corruption, a designation that allows their assets in the United States to be frozen and bars them from conducting financial transactions through the United States.

The officials have denied the charges, and called them a pretext as part of an effort to topple Maduro’s government.

The new legislation seeks to put into law sanctions imposed under former President Barack Obama’s executive order targeting individuals found to “undermine democratic governance” or involved in corruption.

(Reporting by Patricia Zengerle; Editing by Peter Cooney)

North Korea says U.S. bomber flights push peninsula to brink of nuclear war

Kim Jong Un stands on the conning tower of a submarine during his inspection of the Korean People's Army Naval Unit 167 in this undated photo released June 16, 2014. REUTERS/KCNA

By Ju-min Park and Ben Blanchard

SEOUL/BEIJING (Reuters) – North Korea accused the United States on Tuesday of pushing the Korean peninsula to the brink of nuclear war after a pair of strategic U.S. bombers flew training drills with the South Korean and Japanese air forces in another show of strength.

The two supersonic B-1B Lancer bombers were deployed amid rising tensions over North Korea’s pursuit of its nuclear and missile programmes in defiance of U.N. sanctions and pressure from the United States.

The flight of the two bombers on Monday came as U.S. President Donald Trump said he would be “honoured” to meet North Korean leader Kim Jong Un in the right circumstances, and as his CIA director landed in South Korea for talks.

South Korean Defence Ministry spokesman Moon Sang-gyun told a briefing in Seoul that Monday’s joint drill was conducted to deter provocations by the North.

North Korea said the bombers conducted “a nuclear bomb dropping drill against major objects” in its territory at a time when Trump and “other U.S. warmongers are crying out for making a preemptive nuclear strike” on the North.

“The reckless military provocation is pushing the situation on the Korean peninsula closer to the brink of nuclear war,” the North’s official KCNA news agency said on Tuesday.

Tensions on the Korean peninsula have been high for weeks, driven by concerns that the North might conduct its sixth nuclear test in defiance of pressure from the United States and Pyongyang’s sole major ally, China.

The U.S. military’s THAAD anti-missile defence system has reached initial operational capacity in South Korea, U.S. officials told Reuters, although they cautioned that it would not be fully operational for some months.

China has repeatedly expressed its opposition to the system, whose powerful radar it fears could reach inside Chinese territory. Foreign Ministry spokesman Geng Shuang again denounced THAAD on Tuesday.

“We will resolutely take necessary measures to defend our interests,” Geng said, without elaborating.

Asked about Trump’s suggestion he could meet Kim, Geng said China had noted U.S. comments that it wanted to use peaceful means to resolve the issue. Trump has been recently been full of praise of Chinese President Xi Jinping’s efforts to rein in its neighbour.

“China has always believed that using peaceful means via dialogue and consultation to resolve the peninsula’s nuclear issue is the only realistic, feasible means to achieve denuclearization of the peninsula and maintain peace and stability there, and is the only correct choice,” Geng told a daily news briefing.

It was widely feared North Korea could conduct its sixth nuclear test on or around April 15 to celebrate the anniversary of the birth of the North’s founding leader, Kim Il Sung, or on April 25 to coincide with the 85th anniversary of the foundation of its Korean People’s Army.

The North has conducted such tests or missile launches to mark significant events in the past.

Instead, North Korea conducted an annual military parade, featuring a display of missiles on April 15 and then a large, live-fire artillery drill 10 days later.

“VIGILANCE, READINESS”

Acting South Korean president Hwang Kyo-ahn called for stronger vigilance because of continuing provocation by North Korea and for countries such as China to increase pressure on the North.

The U.S. military said Mike Pompeo, director of the Central Intelligence Agency, visited South Korea and conducted detailed security discussions with his South Korean counterpart Lee Byung-ho and also visited Yeonpyeong island, which was bombed by North Korea in 2010.

Trump drew criticism in Washington on Monday when he said he would be “honoured” to meet North Korea’s young leader.

“If it would be appropriate for me to meet with him, I would absolutely, I would be honoured to do it,” Trump told Bloomberg News.

Trump did not say what conditions would be needed for such a meeting to occur or when it could happen.

“Clearly conditions are not there right now,” White House spokesman Sean Spicer said.

Trump warned in an interview with Reuters on Thursday that a “major, major conflict” with North Korea was possible, while China said last week the situation on the Korean peninsula could escalate or slip out of control.

In a show of force, the United States has already sent an aircraft carrier strike group, led by the USS Carl Vinson, to waters off the Korean peninsula to conduct drills with South Korea and Japan.

North Korea test-launched a missile on Saturday that appeared to have failed within minutes, its fourth successive failed launch since March. It has conducted two nuclear tests and a series of missile-related activities at an unprecedented pace since the beginning of last year.

The North is technically still at war with the South after their 1950-53 conflict ended in a truce, not a treaty, and regularly threatens to destroy the United States, Japan and South Korea.

(Writing by Jack Kim; Editing by Paul Tait and Nick Macfie)

Exclusive: Trump says ‘major, major’ conflict with North Korea possible, but seeks diplomacy

U.S. President Donald Trump looks out a window of the Oval Office following an interview with Reuters at the White House in Washington, U.S., April 27, 2017. REUTERS/Carlos Barria

By Stephen J. Adler, Steve Holland and Jeff Mason

WASHINGTON (Reuters) – U.S. President Donald Trump said on Thursday a major conflict with North Korea is possible in the standoff over its nuclear and missile programs, but he would prefer a diplomatic outcome to the dispute.

“There is a chance that we could end up having a major, major conflict with North Korea. Absolutely,” Trump told Reuters in an Oval Office interview ahead of his 100th day in office on Saturday.

Nonetheless, Trump said he wanted to peacefully resolve a crisis that has bedeviled multiple U.S. presidents, a path that he and his administration are emphasizing by preparing a variety of new economic sanctions while not taking the military option off the table.

“We’d love to solve things diplomatically but it’s very difficult,” he said.

In other highlights of the 42-minute interview, Trump was cool to speaking again with Taiwan’s president after an earlier telephone call with her angered China.

He also said he wants South Korea to pay the cost of the U.S. THAAD anti-missile defense system, which he estimated at $1 billion, and intends to renegotiate or terminate a U.S. free trade pact with South Korea because of a deep trade deficit with Seoul.

Asked when he would announce his intention to renegotiate the pact, Trump said: “Very soon. I’m announcing it now.”

Trump also said he was considering adding stops to Israel and Saudi Arabia to a Europe trip next month, emphasizing that he wanted to see an Israeli-Palestinian peace. He complained that Saudi Arabia was not paying its fair share for U.S. defense.

Asked about the fight against Islamic State, Trump said the militant group had to be defeated.

“I have to say, there is an end. And it has to be humiliation,” he said, when asked about what the endgame was for defeating Islamist violent extremism.

XI ‘TRYING VERY HARD’

Trump said North Korea was his biggest global challenge. He lavished praise on Chinese President Xi Jinping for Chinese assistance in trying to rein in Pyongyang. The two leaders met in Florida earlier this month.

“I believe he is trying very hard. He certainly doesn’t want to see turmoil and death. He doesn’t want to see it. He is a good man. He is a very good man and I got to know him very well.

“With that being said, he loves China and he loves the people of China. I know he would like to be able to do something, perhaps it’s possible that he can’t,” Trump said.

Trump spoke just a day after he and his top national security advisers briefed U.S. lawmakers on the North Korean threat and one day before Secretary of State Rex Tillerson will press the United Nations Security Council on sanctions to further isolate Pyongyang over its nuclear and missile programs.

The Trump administration on Wednesday declared North Korea “an urgent national security threat and top foreign policy priority.” It said it was focusing on economic and diplomatic pressure, including Chinese cooperation in containing its defiant neighbor and ally, and remained open to negotiations.

U.S. officials said military strikes remained an option but played down the prospect, though the administration has sent an aircraft carrier and a nuclear-powered submarine to the region in a show of force.

Any direct U.S. military action would run the risk of massive North Korean retaliation and huge casualties in Japan and South Korea and among U.S. forces in both countries.

‘I HOPE HE’S RATIONAL’

Trump, asked if he considered North Korean leader Kim Jong Un to be rational, said he was operating from the assumption that he is rational. He noted that Kim had taken over his country at an early age.

“He’s 27 years old. His father dies, took over a regime. So say what you want but that is not easy, especially at that age.

“I’m not giving him credit or not giving him credit, I’m just saying that’s a very hard thing to do. As to whether or not he’s rational, I have no opinion on it. I hope he’s rational,” he said.

Trump, sipping a Coke delivered by an aide after the president ordered it by pressing a button on his desk, rebuffed an overture from Taiwan President Tsai Ing-wen, who told Reuters a direct phone call with Trump could take place again after their first conversation in early December angered Beijing.

China considers neighboring Taiwan to be a renegade province.

“My problem is that I have established a very good personal relationship with President Xi,” said Trump. “I really feel that he is doing everything in his power to help us with a big situation. So I wouldn’t want to be causing difficulty right now for him.

“So I would certainly want to speak to him first.”

Trump also said he hoped to avoid a potential government shutdown amid a dispute between congressional Republicans and Democrats over a spending deal with a Saturday deadline looming.

But he said if a shutdown takes place, it will be the Democrats’ fault for trying to add money to the legislation to “bail out Puerto Rico” and other items.

He also defended the one-page tax plan he unveiled on Wednesday from criticism that it would increase the U.S. deficit, saying better trade deals and economic growth would offset the costs.

“We will do trade deals that are going to make up for a tremendous amount of the deficit. We are going to be doing trade deals that are going to be much better trade deals,” Trump said.

(Editing by Ross Colvin)

Trump: Time to remove ‘blindfolds’; U.N. must ready new North Korea sanctions

Japanese Prime Minister Shinzo Abe and U.S. President Donald Trump pose for a photograph before attending dinner at Mar-a-Lago Club in Palm Beach, Florida,

By Steve Holland and Ben Blanchard

WASHINGTON/BEIJING (Reuters) – U.S. President Donald Trump said on Monday the U.N. Security Council must be prepared to impose new sanctions on North Korea, amid escalating tensions over its missile and nuclear programs, saying people had acted as if “blindfolded” for decades on a big problem that finally needed to be solved.

“The status quo in North Korea is also unacceptable,” Trump told a meeting of U.N. Security Council ambassadors at the White House, held at a time of mounting concern that North Korea may be preparing a sixth nuclear bomb test.

“The council must be prepared to impose additional and stronger sanctions on North Korean nuclear and ballistic missile programs,” Trump said.

“This is a real threat to the world, whether we want to talk about it or not. North Korea is a big world problem and it’s a problem that we have to finally solve,” he said. “People put blindfolds on for decades and now it’s time to solve the problem.”

Trump gave no indication as to when new sanctions should be imposed on North Korea. U.S. officials say his administration has been debating whether they should be held as response to any new North Korean missile or nuclear test, or imposed as soon as they can be agreed.

Chinese President Xi Jinping earlier called for all sides to exercise restraint in a telephone call about North Korea with Trump, as Japan conducted exercises with a U.S. aircraft carrier strike group headed for Korean waters.

Angered by the approach of the USS Carl Vinson carrier group, a defiant North Korea, which has carried on nuclear and missile tests in defiance of successive rounds of U.N. sanctions, said on Monday the deployment was “an extremely dangerous act by those who plan a nuclear war to invade”.

“The United States should not run amok and should consider carefully any catastrophic consequence from its foolish military provocative act,” Rodong Sinmun, the official newspaper of the North’s ruling Workers’ Party, said in a commentary on Monday.

Two Japanese destroyers have joined the carrier group for exercises in the western Pacific, and South Korea said on Monday it was also in talks about holding joint naval exercises.

Worry that North Korea could be preparing to conduct another nuclear test or launch more ballistic missiles has increased as it prepares to celebrate the 85th anniversary of the foundation of its Korean People’s Army on Tuesday.

It has marked similar events in the past with nuclear tests or missile launches.

Trump has vowed to prevent North Korea from being able to hit the United States with a nuclear missile and has said all options are on the table, including a military strike.

China is North Korea’s sole major ally but it has been angered by its nuclear and missile programs and is frustrated by its belligerence.

China has repeatedly called for the denuclearisation of the Korean peninsula and is worried the situation could spin out of control, leading to war and a chaotic collapse of its isolated, impoverished neighbor.

Trump, in his phone call with Xi, criticized North Korea’s “continued belligerence” and emphasized that its actions “are destabilizing the Korean peninsula”, the White House said.

“The two leaders reaffirmed the urgency of the threat posed by North Korea’s missile and nuclear programs, and committed to strengthen coordination in achieving the denuclearisation of the Korean peninsula,” it said.

Xi told Trump China resolutely opposed any actions that ran counter to U.N. resolutions, China’s foreign ministry said.

China “hopes that all relevant sides exercise restraint, and avoid doing anything to worsen the tense situation”, the Chinese ministry said in a statement, paraphrasing Xi.

The call between the presidents was the latest manifestation of their close communication, which was good for their countries and the world, a Chinese foreign ministry spokesman said.

‘FULLY READY’

U.S. ambassador to the United Nations Nikki Haley, speaking on NBC’s “Today” program, said the United States and the international community were maintaining pressure on North Korean leader Kim Jong Un but were “not trying to pick a fight with him”.

Asked whether a preemptive strike was under consideration, she said: “We are not going to do anything unless he gives us reason to do something.”

“If you see him attack a military base, if you see some sort of intercontinental ballistic missile, then obviously we’re going to do that. But right now, we’re saying ‘don’t test, don’t use nuclear missiles, don’t try and do any more actions’, and I think he’s understanding that. And China’s helping really put that pressure on him.”

Trump also spoke by telephone with Japanese Prime Minister Shinzo Abe.

“We agreed to strongly demand that North Korea, which is repeating its provocation, show restraint,” Abe later told reporters. “We will maintain close contact with the United States, keep a high level of vigilance and respond firmly.”

Envoys on the North Korean nuclear issue from the United States, South Korea and Japan are due to meet in Tokyo on Tuesday.

The U.S. government has not specified where the carrier strike group is but U.S. Vice President Mike Pence said on Saturday it would arrive “within days”.

South Korean Defense Ministry spokesman Moon Sang-gyun gave no details about plans to join the U.S. carrier group for exercises, but said Seoul was holding discussions with the U.S. Navy.

“The South Korean and U.S. militaries are fully ready for North Korea’s nuclear test,” Moon said.

South Korean and U.S. officials have feared for some time that North Korea’s sixth nuclear test could be imminent.

Satellite imagery analyzed by 38 North, a Washington-based North Korea monitoring project, found some activity at North Korea’s Punggye-ri nuclear test site last week.

However, the group said it was unclear whether the site was in a “tactical pause” before another test or was carrying out normal operations.

Adding to the tension, North Korea detained a U.S. citizen on Saturday as he attempted to leave the country.

(Reporting by Steve Holland, Matt Spetalnick, Susan Heavey and David Brunnstrom in Washington, Takashi Umekawa and Linda Sieg in Tokyo, James Pearson in Seoul, and Philip Wen, Ben Blanchard and Michael Martina in Beijing; Editing by Robert Birsel and James Dalgleish)

U.S. says Iran complies with nuke deal but orders review on lifting sanctions

A staff member removes the Iranian flag from the stage after a group picture with foreign ministers and representatives of the U.S., Iran, China, Russia, Britain, Germany, France and the European Union during the Iran nuclear talks in Vienna, July 2015. REUTERS/Carlos Barria

By Lesley Wroughton

WASHINGTON (Reuters) – The Trump administration said on Tuesday it was launching an inter-agency review of whether the lifting of sanctions against Iran was in the United States’ national security interests, while acknowledging that Tehran was complying with a deal to rein in its nuclear program.

In a letter to U.S. House of Representatives Speaker Paul Ryan, the top Republican in Congress, on Tuesday U.S. Secretary of State Rex Tillerson said Iran remained compliant with the 2015 deal, but said there were concerns about its role as a state sponsor of terrorism.

Under the deal, the State Department must notify Congress every 90 days on Iran’s compliance under the so-called Joint Comprehensive Plan of Action (JCPOA). It is the first such notification under U.S. President Donald Trump.

“The U.S. Department of State certified to U.S. House Speaker Paul Ryan today that Iran is compliant through April 18 with its commitments under the Joint Comprehensive Plan of Action,” Tillerson said in a statement.

“President Donald J. Trump has directed a National Security Council-led interagency review of the Joint Comprehensive Plan of Action that will evaluate whether suspension of sanctions related to Iran pursuant to the JCPOA is vital to the national security interests of the United States,” Tillerson added.

He did not say how long the review would take but said in the letter to Ryan that the administration looked forward to working with Congress on the issue.

During his presidential campaign, Trump called the agreement “the worst deal ever negotiated,” raising questions over whether he would rip up the agreement once he took office.

The historic deal between Iran and six major powers restricts Tehran’s nuclear program in exchange for the lifting of international oil and financial sanctions against the Islamic Republic.

Iran denies ever having considered developing atomic weapons although nuclear experts have warned that any U.S. violation of the nuclear deal would allow Iran also to pull back from its commitments to curb nuclear development.

Those commitments include reducing the number of its centrifuges by two-thirds, capping its level of uranium enrichment well below the level needed for bomb-grade material, reducing its enriched uranium stockpile from around 10,000 kg to 300 kg for 15 years, and submitting to international inspections to verify its compliance.

Last month Trump’s Defense Secretary James Mattis said Iran continued to behave as an exporter of terrorism and still sponsors militant activity.

The United States has long accused Iran of being the world’s biggest state sponsor of terrorism, saying Tehran supported conflicts in Syria, Iraq and Yemen, and backed groups such as Hezbollah, its Lebanon-based ally.

(Reporting by Lesley Wroughton; Editing by Simon Cameron-Moore)

Exclusive: Malaysia inspects North Korean coal ship for possible U.N. sanctions breach

An Eikon ship-tracking screen shows the position of the North Korean ship Kum Ya off Penang March 29, 2017. REUTERS/Thomas White/Illustration

By James Pearson, Rozanna Latiff and Tom Allard

KUALA LUMPUR (Reuters) – Malaysia briefly prevented a North Korean ship carrying coal from entering its port in Penang because of a suspected breach of United Nations sanctions, a port worker and Malaysian maritime officials told Reuters on Wednesday

The KUM YA, was carrying 6,300 metric tonnes of anthracite coal, according to a worker at Penang Port who spoke to Reuters on condition of anonymity. It was later allowed to dock, where an inspection team accompanied by an armed escort boarded the ship.

A December 2016 U.N. Security Council resolution placed a cap on exports of North Korean coal, and urged member states to apply extra scrutiny on North Korean ships.

Production of coal in North Korea is state-controlled and its exports are a key source of hard currency for the isolated country’s banned nuclear and ballistic missile programs.

Relations between North Korea and Malaysia, which have been friendly for decades, have soured following the February assassination of North Korean leader Kim Jong Un’s half-brother at Kuala Lumpur International Airport.

The North Korean ship had been initially prevented from entering Penang Port due to a possible breach of U.N. sanctions, MMEA deputy director-general of operations Zulkifli Abu Bakar, told Reuters without offering further details.

It was unclear what the inspectors were checking on.

The United Nations in its annual reports on how members have complied with sanctions have cited a number of instances over the past decade in which North Korean missile parts and coal connected to sanctioned entities were trans-shipped through Malaysia.

Malaysia is one of the few countries in the world which buys North Korean coal, with China by far the biggest importer.

LUCKY STAR

The KUM YA was recently re-flagged as a North Korean ship, changing its name from Lucky Star 7 in November last year, according to the Equasis shipping database.

It was registered on Feb. 13 to North Korean shipping company Sonchonggang Water Transport, according to copies of the ship’s registration documents, which were issued by North Korea’s Maritime Administration, and seen by Reuters.

The ship was carrying 20 crew members, and was scheduled to sail onto Singapore, the port worker said.

The ship listed its port of origin as Busan, South Korea. However, shipping data in Thomson Reuters Eikon shows the cargo was loaded at the Huaneng Shandong Power Station Weihai, a coal-fired power plant. It then sailed to Penang through the South China Sea and the Malacca Strait, the data shows. (http://tmsnrt.rs/2ofxNXe)

China halted all coal imports from North Korea starting on Feb. 26, amid growing tensions on the Korean Peninsula following one of a series of Pyongyang’s missile tests.

Malaysia’s foreign ministry told officials at Penang Port not to let the ship dock before an inspection team had it “declared safe,” the port worker said.

The Malaysian Maritime Enforcement Agency (MMEA) confirmed the ship had been stopped following instructions from Malaysia’s foreign ministry, which did not immediately respond to requests for comment.

“Many North Korean ships call on our ports and we never had problems. Just over the recent months, there have been problems,” the port worker told Reuters. “We have never received directives to stop North Korean ships before.”

NOT CONFISCATED

The KUM YA was first stopped at sea before being allowed to dock in port where it was immediately cordoned off, the port worker said.

“Minerals and Geoscience Department officials were then called to inspect the cargo on board. The department officers were told to confirm it was indeed coal on board,” the port worker said.

The coal was being unloaded on Wednesday afternoon and has not been confiscated, the port worker said.

Since 2011, Malaysia has imported over 2 million metric tonnes of coal a year, according to government statistics, which are not broken down by country of origin.

The KUM YA shipment was handled by Malaysian freight forwarding company Alim Maritime Sdn Bhd, the port worker said. An Alim Maritime official reached by telephone declined to comment.

The KUM YA can hold up to 6,843 metric tonnes of cargo, according to Equasis, meaning it was 92 percent full when it arrived in Penang.

(Additional reporting by Emily Chow in KUALA LUMPUR and Henning Gloystein in SINGAPORE; Editing by Bill Tarrant)

Exclusive: North Korea has no fear of U.S. sanctions move, will pursue nuclear arms – envoy

FILE PHOTO: North Korean leader Kim Jong Un watched the ground jet test of a Korean-style high-thrust engine newly developed by the Academy of the National Defence Science in this undated picture provided by KCNA in Pyongyang on March 19, 2017. KCNA/via Reuters/File Photo

By Stephanie Nebehay

GENEVA (Reuters) – North Korea has nothing to fear from any U.S. move to broaden sanctions aimed at cutting it off from the global financial system and will pursue “acceleration” of its nuclear and missile programs, a North Korean envoy told Reuters on Tuesday.

This includes developing a “pre-emptive first strike capability” and an inter-continental ballistic missile (ICBM), said Choe Myong Nam, deputy ambassador at the North Korean mission to the United Nations in Geneva.

Reuters, quoting a senior U.S. official in Washington, reported on Monday that the Trump administration is considering sweeping sanctions as part of a broad review of measures to counter North Korea’s nuclear and missile threat. (For Monday’s story, click http://reut.rs/2n9HZ5a)

“I think this is stemming from the visit by the Secretary of State (Rex Tillerson) to Japan, South Korea and China…We of course are not afraid of any act like that,” Choe told Reuters.

“Even prohibition of the international transactions system, the global financial system, this kind of thing is part of their system that will not frighten us or make any difference.”

He called existing sanctions “heinous and inhumane”.

North Korea has been under sanctions for “half a century” but the communist state survives by placing an emphasis on juche or “self-sufficiency”, he said. His country wants a forum set up to examine the “legality and legitimacy of the sanctions regime”.

He denounced joint annual military exercises currently being carried out by the United States and South Korea on the divided peninsula and criticized remarks by Tillerson during his talks with regional allies last week.

“All he was talking about is for the United States to take military actions on DPRK,” Choe said, using the acronym for the Democratic People’s Republic of Korea.

North Korea rejects claims by Washington and Seoul that the military drills are defensive. They involve strategic nuclear bombers and a nuclear submarine, Columbus, that recently entered South Korean ports, he said.

“In the light of such huge military forces involved in the joint military exercises, we have no other choice but to continue with our full acceleration of the nuclear programs and missile programs. It is because of these hostile activities on the part of the United States and South Korea.”

PRE-EMPTIVE STRIKE CAPABILITY

“We strengthen our national defense capability as well as pre-emptive strike capabilities with nuclear forces as a centerpiece,” Choe said.

Asked to comment on Choe’s remarks, a U.S. State Department spokeswoman, Anna Richey-Allen, called on North Korea “to refrain from provocative actions and inflammatory rhetoric…and to make the strategic choice to fulfill its international obligations and commitments and return to serious talks.”

Choe declined to give technical details of North Korea’s latest rocket engine test on Sunday – seen as a possible prelude to a partial ICBM flight – calling it a great historical event that would lead to “fruitful outcomes”.

“I can tell you for sure that the inter-continental ballistic rockets of the DPRK will be launched at any time and at any place as decided by our Supreme Leadership,” Choe said, recalling leader Kim Jong Un’s pledge in a New Year’s address.

Analysts say North Korea has likely mastered the technology to power the different stages of an ICBM and may show it off soon, but is likely still a long way from being able to hit the mainland United States.

“The United States has been talking about launching pre-emptive strikes at North Korea,” Choe said. “And we have been prepared to deter, to counter-attack such attacks on the part of the United States.

“We would utilize every possible means in our hands and the inter-continental ballistic rocket is one of them.”

(Reporting by Stephanie Nebehay; additional reporting by David Brunnstrom in Washington; editing by Ralph Boulton and Jonathan Oatis)

Exclusive: Trump administration weighing broad sanctions on North Korea – U.S. official

FILE PHOTO: North Korean leader Kim Jong Un provides field guidance at the construction site of Ryomyong Street in this undated picture provided by KCNA in Pyongyang on March 16, 2017. KCNA/via Reuters

By Matt Spetalnick and David Brunnstrom

WASHINGTON (Reuters) – The Trump administration is considering sweeping sanctions aimed at cutting North Korea off from the global financial system as part of a broad review of measures to counter Pyongyang’s nuclear and missile threat, a senior U.S. official said on Monday.

The sanctions would be part of a multi-pronged approach of increased economic and diplomatic pressure – especially on Chinese banks and firms that do the most business with North Korea – plus beefed-up defenses by the United States and its South Korean and Japanese allies, according to the administration official familiar with the deliberations.

While the long-standing option of pre-emptive military strikes against North Korea is not off the table – as reflected by U.S. Secretary of State Rex Tillerson’s warning to Pyongyang during his Asia tour last week – the new administration is giving priority for now to less-risky options.

The policy recommendations being assembled by President Donald Trump’s national security adviser, H.R. McMaster, are expected to reach the president’s desk within weeks, possibly before a summit with Chinese President Xi Jinping in early April, the official said, speaking on condition of anonymity. North Korea is expected to top the agenda at that meeting.

It is not clear how quickly Trump will decide on a course of action, which could be delayed by the slow pace at which the administration is filling key national security jobs.

The White House declined comment.

Trump met McMaster on Saturday to discuss North Korea and said afterward that the country’s leader, Kim Jong Un, was “acting very, very badly.”

The president spoke hours after North Korea boasted of a successful rocket-engine test, which officials and experts think is part of a program aimed at building an intercontinental ballistic missile capable of hitting the United States.

‘SECONDARY SANCTIONS’

The administration source said U.S. officials, including Tillerson, had privately warned China about broader “secondary sanctions” that would target banks and other companies that do business with North Korea, most of which are Chinese.

The move under consideration would mark an escalation of Trump’s pressure on China to do more to contain North Korea. It was not clear how Chinese officials responded to those warnings but Beijing has made clear its strong opposition to such moves.

In Beijing, Chinese Foreign Ministry spokeswoman Hua Chunying said the situation on the Korean peninsula was at a crossroads and there were two prospects.

One, she said, was that the relevant parties could continue to “escalate toward conflict and potential war”.

“The other choice is that all sides can cool down and jointly pull the Korean nuclear issue back to a path of political and diplomatic resolution,” Hua told a daily news briefing on Tuesday.

China would strictly and comprehensively implement its duties under the U.N. Security Council resolutions, which meant implementing sanctions but also making efforts to get back to talks, she added.

The objective of the U.S. move being considered would be to tighten the screws in the same way that the widening of sanctions – to encompass foreign firms dealing with Iran – was used to pressure Tehran to open negotiations with the West on its suspected nuclear weapons program. That effort ultimately led to a 2015 deal to restrict Iran’s nuclear program in return for sanctions relief.

For such measures to have any chance to influence the behavior of North Korea, which is already under heavy sanctions, Washington must secure full international cooperation – especially from China, which has shown little appetite for putting such a squeeze on its neighbor.

Analysts also have questioned whether such sanctions would be as effective on North Korea as they were on a major oil producer such as Iran, given the isolated nation’s limited links to the world financial system.

North Korea has relied heavily on illicit trade done via small Chinese banks. So, to be applied successfully, the new measures would have to threaten to bar those banks from the international financial system.

Also under consideration are expanded efforts to seize assets of Kim and his family outside North Korea, the official said.

MILITARY OPTIONS

The military dimension of the review includes a strengthened U.S. presence in the region and deployment of advanced missile defenses, initially in South Korea and possibly in Japan. The U.S. military has begun to install a Terminal High Altitude Area Defense, or THAAD, system in South Korea, despite Chinese opposition.

Washington is increasingly concerned, however, that the winner of South Korea’s May 9 presidential election might backtrack on the deployment and be less supportive of tougher sanctions.

Tillerson warned on Friday that Washington had not ruled out military action if the threat from North Korea becomes unacceptable.

For now, U.S. officials consider pre-emptive strikes too risky, given the danger of igniting a regional war and causing massive casualties in Japan and South Korea and among tens of thousands of U.S. troops based in both allied countries.

Another U.S. government source said Trump could also opt to escalate cyber attacks and other covert action aimed at undermining North Korea’s leadership.

“These options are not done as stand-alones,” the first U.S. official said. “It’s going to be some form of ‘all of the above,’ probably excluding military action.”

Trump is known to have little patience for foreign policy details, but officials say he seems to have heeded a warning from his predecessor, Barack Obama, that North Korea would be the most urgent international issue he would face.

In his North Korea briefings, Trump has asked repeatedly how many nuclear warheads and missiles Pyongyang has, at the same time as demanding to know how much South Korea and Japan are paying for their own defense, one U.S. official said.

(Reporting by Matt Spetalnick and David Brunnstrom; Additional reporting by John Walcott, and Michael Martina in Beijing; Editing by Kieran Murray, Peter Cooney and Nick Macfie)