U.N. talks aim for Syria roadmap, no ‘Plan B’ but war

GENEVA (Reuters) – A U.N. mediator said on Monday there was no “Plan B” other than a resumption of conflict in the Syrian war if the first of three rounds of talks which aim to agree a “clear roadmap” for Syria fail to make progress.

Syria faces a moment of truth, Staffan de Mistura said when he opened talks to end a five-year war which has displaced half the population, sent refugees streaming into Europe and turned Syria into a battlefield for foreign forces and jihadis.

The talks are the first in more than two years and come amid a marked reduction in fighting after last month’s “cessation of hostilities”, sponsored by Washington and Moscow and accepted by President Bashar al-Assad’s government and many of his foes.

But the limited truce, which excludes the powerful Islamic State and Nusra Front groups, is fragile. Both sides have accused each other of multiple violations, and they arrived in Geneva with what look like irreconcilable agendas.

The Syrian opposition says the talks must focus on setting up a transitional governing body with full executive power, and that Assad must leave power at the start of the transition. Damascus says Assad’s opponents are deluded if they think they will take power at the negotiating table.

The head of the government delegation, Bashar Ja’afari, described his first meeting with de Mistura on Monday as positive and constructive, adding he submitted a document entitled “Basic Elements for a Political Solution”.

De Mistura said some ideas had been floated in a meeting he described as a preparatory session, ahead of a further meeting on Wednesday which would focus on core issues. Asked about the gulf between the two teams, he said it was the nature of negotiations that both sides start off with tough positions.

In a sign of how wide that gulf is, de Mistura is meeting the two sides separately – at least initially.

The talks must focus on political transition, which is the “mother of all issues”, the U.N. envoy said before his talks with Ja’afari. Separate groups would keep tackling humanitarian issues and the cessation of hostilities.

“As far as I know, the only Plan B available is return to war, and to even worse war than we had so far,” he said.

PAST FAILURES

Several ceasefires and peace talks have been attempted since the conflict, which has killed 250,000 people, broke out five years ago this week.

Hundreds of U.N. peacekeepers deployed to Syria in 2012, but pulled out after fighting resumed. Peace talks in Geneva two years ago collapsed after making no progress.

De Mistura said that if he saw no willingness to negotiate in this latest search for a political agreement, he would hand the issue “back to those who have influence, and that is the Russian Federation, the USA … and to the Security Council”.

Russia’s military intervention in Syria in September helped turn the tide of war in Assad’s favor after months of gains in western Syria by rebel fighters, who were aided by foreign military supplies including U.S.-made anti-tank missiles.

The reduction in fighting has allowed aid to be brought to besieged areas, though the opposition says the deliveries to rebel-held territory fall well short of needs.

Clashes have taken place on many fronts. Government forces and allies on Monday fought insurgents including Islamist groups in western Syria, such as Latakia and Homs provinces, the Britain-based Syrian Observatory for Human Rights said.

Observatory director Rami Abdulrahman said there had been a general rise in the daily death toll after an initial drop that occurred at the start of the truce.

In the northern province of Aleppo, Kurdish forces fought with fighters from Islamist factions while rebel forces battled Islamic State militants, the Observatory said.

The emergence of Islamic State in eastern Syria and across the border in Iraq led Washington and its Western and Arab allies to launch an air campaign against the ultra-hardline Islamist group in 2014.

“CLEAR ROADMAP”

The opposition are holding out little hope that Geneva will bring them nearer to their goal of toppling Assad, accusing the government of preparing for more war. They also fear that the international focus on confronting Islamic State has led Washington to soften its opposition to the Syrian president.

Rebels say they are ready to fight on despite their recent defeats. They hope foreign backers – notably Saudi Arabia – will send them more powerful weapons including anti-aircraft missiles if the political process collapses.

The first round of talks are scheduled to run until around March 24, followed by a break of 7-10 days, then a second round of at least two weeks before another recess and a third round.

“By then we believe we should have at least a clear roadmap,” de Mistura said. “I’m not saying agreement, but a clear roadmap because that’s what Syria is expecting from all of us.”

He did not mention whether Kurdish leaders would be involved for the first time, but said that the “proximity” format of indirect talks gave him flexibility to hear as many voices as possible, and all Syrians should be given a chance.

The main Kurdish YPG militia, which controls a swathe of northern Syria and is backed by the United States in combat with Islamic State fighters, has so far been excluded from talks in line with the views of Turkey, which considers it a terrorist group.

“The rule of the game will be inclusiveness,” de Mistura said. “In fact, the list of those whom we are going to consult or meet, or will be part of — eventually, I hope — not only of proximity negotiations but in fact direct negotiations is going to be constantly updated.”

(Writing by Dominic Evans, editing by Peter Millership)

Syria opposition to attend Geneva peace talks, but says Assad escalating war

BEIRUT (Reuters) – Syria’s main opposition group said it would attend peace talks on Monday but accused the government of President Bashar al-Assad of preparing to escalate the war to strengthen its negotiating position.

The U.N.-brokered talks, which coincide with the fifth anniversary of the conflict, will take place in Geneva two weeks after the start of a ceasefire agreement.

The truce deal has reduced violence although not halted the fighting, with further hostilities reported in western Syria on Friday.

The High Negotiations Committee said it would attend the peace talks as part of its “commitment to international efforts to stop the spilling of Syrian blood and find a political solution”.

But in its statement on Friday it played down any chance of reaching agreement with the Syrian government to end the war that has killed more than 250,000 people and led to a refugee crisis in the Middle East and Europe.

Russia said it expected its ally Syria to attend, although Damascus has yet to publicly confirm it will do so. The Syrian foreign minister is expected to announce his government’s position on the talks on Saturday.

Peace talks convened two years ago collapsed because the sides were unable to agree an agenda: Damascus wanted a focus on fighting terrorism, the term it uses for the rebellion, while the opposition wanted to discuss a transitional government.

The latest talks are intended to focus on future political arrangements in Syria, a new constitution and elections, U.N. envoy Staffan de Mistura said.

The opposition HNC said it wanted the talks to concentrate on the establishment of an interim governing body with full executive powers.

HNC coordinator Riad Hijab said the group was “concerned with representing the just cause of the Syrian people … and investing in all available chances to alleviate the Syrian people’s suffering”.

“We know that they (the government) are committing crimes, and that they are preparing an air and ground escalation in the coming period,” he said, without elaborating.

HNC spokesman Salim al-Muslat said they expected a government escalation with the aim of strengthening Damascus’s position at the negotiating table.

“I believe this is a strategy,” he said.

“FAILING PROJECT”

A prominent Syrian dissident who is not part of the Saudi-backed HNC, Haytham Manna, said he would stay away from the talks, which he regarded as a “failing project”.

Manna, co-leader of the Syrian Democratic Council that includes Kurdish members, boycotted the last round of talks because the Kurds were not included.

Russian Foreign Minister Sergei Lavrov said however that de Mistura should this time include representatives of Kurdish groups, which have been fighting in Syria.

Kurdish groups such as the PYD party and its affiliated YPG militia have not been invited so far. Regional power Turkey does not want them in Geneva and views the YPG as a terrorist group. Russia says the Kurds are a legitimate part of a future Syria, and should be at the table.

There has been speculation that they will be included in the coming round. De Mistura says he has not expanded the list of invitees, but the talks’ format gives him flexibility to consult whomever he wants.

PYD co-chair Saleh Muslim said Kurds should be included for any political settlement to work.

“We believe that if we are not present, the process will not be completed in the right way,” he said.

The cessation of hostilities agreement which came into force on Feb. 27 does not include the two main jihadist groups, Islamic State and the Nusra Front.

A source close to the government said the Syrian army, backed by Russian air strikes, is aiming to capture the historic city of Palmyra from Islamic State and open a road to the eastern province of Deir al-Zor, where the jihadists are also established.

The Russian air force has hit Palmyra with dozens of air strikes since Wednesday, according to the Syrian Observatory for Human Rights monitoring group.

Syrian government forces were on Friday battling Islamic State 7 km (4 miles) from the ancient site that fell to the jihadists last May.

Islamic State has blown up ancient temples and tombs since capturing Palmyra in what the U.N. cultural agency UNESCO has called a war crime.

The capture of Palmyra and further eastward advances into Deir al-Zor would mark the most significant Syrian government gain against Islamic State since the start of the Russian intervention last September.

Warplanes also hit areas of western Syria on Friday, the Observatory said. An air raid by the government side killed at least five people in a rebel-held area of Aleppo.

It also reported clashes between insurgents and government forces in the northern Latakia countryside.

In northern Aleppo province clashes continued between Kurdish fighters and insurgents, in a fight that has pitted the YPG and its allies against rebels supported through Turkey.

(Additional reporting by Tom Perry, Lisa Barrington, Tom Miles, Denis Dyomkin and Alexander Winning; Writing by Giles Elgood; Editing by Pravin Char)

After missile tests, U.N. urges Iran to act with restraint

UNITED NATIONS (Reuters) – United Nations Secretary-General Ban Ki-moon has reacted to Iran’s recent ballistic missile tests by urging Tehran to act with moderation and restraint and to avoid increasing regional tensions, U.N. spokesman Stephane Dujarric said on Thursday.

“In the current political atmosphere in the Middle East region, and so soon after the positive news of the lifting of sanctions against Iran, the secretary-general calls … Iran to act with moderation, caution and the good sense not to increase tensions through hasty actions,” Dujarric told reporters.

A series of ballistic missile tests this week conducted by Iran’s Revolutionary Guard units drew international concern. The United States, France and other countries said that if confirmed, of launches nuclear-capable ballistic missiles would be a violation of a U.N. Security Council resolution.

Dujarric noted that it is up to the 15-nation council to examine issues related to resolution 2231, which calls upon Iran “not to undertake any activity related to ballistic missiles designed to be capable of delivering nuclear weapons, including launches using such ballistic missile technology.”

The United States has said Iran’s missile tests do not violate the terms of an historic nuclear deal between Tehran and six major powers, which resolution 2231, adopted in July 2015, endorsed. The U.N. missile restrictions and an arms embargo on Iran are not technically part of the nuclear agreement.

Council diplomats say they will first await confirmation from national intelligence agencies about whether the missiles Iran has fired were nuclear-capable. They also say that Russia and China, which opposed the continuation of restrictions on Iran’s missile program, would likely block council action.

Iran’s Foreign Ministry said on Wednesday that the tests were not in violation of the nuclear agreement, which led to lifting of sanctions in January.

Western diplomats say resolution 2231, which “calls upon” Iran to refrain from certain ballistic missile activity, offers no green light for nuclear-capable missile launches by Tehran and is therefore a clear ban.

However, they acknowledge that Russia, China and Iran likely interpret that language as an appeal to Iran to voluntarily refrain from missile activity. Tehran has also said that none of its missiles are designed to carry nuclear weapons.

While no new U.N. sanctions may be imminent, Western diplomats say that the United States and some of its allies could take additional punitive action in the form of unilateral national sanctions against Iran over the latest missile launches, something Washington has done previously.

When U.N. sanctions on Iran were lifted in January, the Security Council’s Iran sanctions committee was shut down. But council diplomats said they expect the former chair of that now-defunct committee, Spain, will take on the task of overseeing the monitoring of Tehran’s compliance with resolution 2231.

(Reporting by Louis Charbonneau, editing by Michelle Nichols and Alan Crosby)

Key powers mulling possibility of federal division of Syria

UNITED NATIONS (Reuters) – Major powers close to U.N.-brokered peace talks on Syria are discussing the possibility of a federal division of the war-torn country that would maintain its unity as a single state while granting broad autonomy to regional authorities, diplomats said.

The resumption of Geneva peace talks is coinciding with the fifth anniversary of a conflict that began with protests against President Bashar al-Assad before descending into a multi-sided civil war that has drawn in foreign governments and allowed the growth of Islamic State militants in Syria and Iraq.

Fighting in Syria has slowed considerably since a fragile “cessation of hostilities agreement” brokered by the United States and Russia came into force almost two weeks ago. But an actual peace deal and proper ceasefire remain elusive.

As the United Nations’ peace mediator Staffan de Mistura prepares to meet with delegations from the Syrian government and opposition, one of the ideas receiving serious attention at the moment is a possible federal division of Syria.

Neither the opposition nor government has confirmed its participation in the latest round of peace talks in Switzerland.

Speaking on condition of anonymity, a U.N. Security Council diplomat said some major Western powers, not only Russia, have also been considering the possibility of a federal structure for Syria and have passed on ideas to de Mistura.

“While insisting on retaining the territorial integrity of Syria, so continuing to keep it as a single country, of course there are all sorts of different models of a federal structure that would, in some models, have a very, very loose center and a lot of autonomy for different regions,” the diplomat said.

He offered no details about the models of a federal division of authority that could be applied to Syria. Another council diplomat confirmed the remarks.

OPPOSITION DISLIKES FEDERALISM

The biggest sticking point in the peace talks remains the fate of Assad, who Western and Gulf Arab governments insist must go at the end of a transition period envisioned under a roadmap hammered out in Vienna last year by major powers. Assad’s backers Russia and Iran say Syrians themselves must decide.

After five years of civil war that has killed 250,000 people and driven some 11 million from their homes, Syria’s territory is already effectively split between various parties, including the government and its allies, Western-backed Kurds, opposition groups and Islamic State militants.

This week, Syria’s Saudi Arabian-backed opposition rejected a suggestion by Russia, which like Iran supports Assad’s government and has intervened militarily on its side, that the peace talks could agree a federal structure for the country.

“Any mention of this federalism or something which might present a direction for dividing Syria is not acceptable at all. We have agreed we will expand non-central government in a future Syria, but not any kind of federalism or division,” Syrian opposition coordinator Riad Hijab said.

But the idea of federalism for Syria has not been ruled out. In an interview with Al Jazeera on Thursday, de Mistura said “all Syrians have rejected division (of Syria) and federalism can be discussed at the negotiations.”

In a September interview Assad did not rule out the idea of federalism when asked about it, but said any change must be a result of dialogue among Syrians and a referendum to introduce the necessary changes to the constitution.

“From our side, when the Syrian people are ready to move in a certain direction, we will naturally agree to this,” he said at the time.

The co-leader of Syrian Kurdish PYD party, which exercises wide influence over Kurdish areas of Syria, has made clear the PYD was open to the idea.

“What you call it isn’t important,” PYD’s Saleh Muslim told Reuters on Tuesday. “We have said over and over again that we want a decentralized Syria – call it administrations, call it federalism – everything is possible.”

The next round of Syria peace talks is not expected to run beyond March 24. After that round ends, there is expected to be a break of a week or 10 days before they resume.

(Additional reporting by Lisa Barrington and Tom Perry in Beirut and Tom Miles in Geneva; Editing by James Dalgleish)

Syria opposition sees fewer truce breaches, U.N. prepares talks

BEIRUT/GENEVA (Reuters) – The Syrian opposition said on Wednesday there had been fewer breaches of a truce agreement by the government and its allies in the past day as a U.N. envoy unveiled plans to resume peace talks next week.

The “cessation of hostilities agreement” brokered by the United States and Russia has slowed the war considerably despite accusations of violations on all sides, preparing the ground for talks which the United Nations plans to convene in Geneva.

The talks will coincide with the fifth anniversary of a conflict that began with protests against President Bashar al-Assad before descending into a multi-sided war that has drawn in foreign governments and allowed the growth of Islamic State.

U.N. envoy Staffan de Mistura said he planned to launch substantive peace talks on Monday, focusing on issues of Syria’s future governance, elections within 18 months, and a new constitution.

While the opposition High Negotiations Committee (HNC) has yet to declare whether it will attend, spokesman Salem al-Muslat said it was positive that the talks would “start … with discussion of the matter of political transition”.

He said the HNC would announce its decision very soon.

The Syrian government, its position strengthened by more than five months of Russian air strikes, has also yet to say whether it will attend. There was no immediate response from Damascus to de Mistura’s remarks. The Syrian foreign minister is due to give a news conference on Saturday at noon.

Peace talks convened in Geneva two years ago collapsed as the sides’ were unable to agree an agenda: Damascus wanted a focus on fighting terrorism – the term it uses for the rebellion – while the opposition wanted talks on transitional government.

TALKS ABORTED

De Mistura aborted a previous attempt to hold talks on Feb. 3 and urged countries in the International Syria Support Group, led by the United States and Russia, to do more preparatory work.

The result was the cessation of hostilities which Western governments say has largely held since it came into effect on Feb. 27. It has been accompanied by more aid deliveries to opposition areas besieged by government forces, though fighting has continued in some important areas of northwestern Syria.

Rebel groups fighting to topple Assad had initially said they would support a two-week halt to the fighting. De Mistura said on Wednesday however that it was an “open-ended concept”.

The next round of talks would not run beyond March 24. There would then be a break of a week or 10 days before resuming.

Asked if the talks could be delayed further from an original start date of March 7, de Mistura said the format gave him a lot of flexibility.

Jan Egeland, who chairs the Syria humanitarian task force, said the United Nations had delivered aid to 10 of 18 besieged areas across the country in the last four weeks, and was working to overcome obstacles and reach remaining areas.

The truce agreement, accepted by Assad’s government and many of his enemies, was the first of its kind in a war that has killed more than 250,000 people and caused a major refugee crisis.

The agreement has not been directly signed by the warring parties and is less binding than a formal ceasefire. It does not cover Islamic State or the al Qaeda-linked Nusra Front, whose fighters are deployed in western Syria in close proximity to rebel groups that have agreed to cease fire.

Russia says it has recorded opposition violations including supplies of weapons via Turkey to rebels in Syria.

FEWER VIOLATIONS

Muslat of the HNC said: “The violations of the truce were great at the start, but yesterday they were much fewer. There are perhaps some positive matters that we are seeing.”

Speaking to Reuters, he said a government blockade of the Damascus suburb of Daraya must be lifted in order to “pave the way to the start of negotiations”. He added this was not a condition for the attending talks but a humanitarian requirement.

Despite the relative success of the cessation of hostilities, the peace talks face great challenges, including the question of Assad’s future.

The opposition says Assad must be removed from power at the start of a transition, while some of his Western enemies have backed away from that position, saying he must go at some point.

Russia has said that the matter should not be predetermined and Syrians should be left to choose. Assad has meanwhile ruled out anything that contravene the constitution, including the idea of a transitional governing body sought by the opposition.

Saudi Foreign Minister Adel al-JubeIr reiterated his government’s tough line on Assad, who has also been boosted by Iranian military support. Saudi Arabia, which is in conflict with Iran across the region, has been a major sponsor of the Syrian insurgency.

“The choice for Bashar al-Assad is to either leave through a political process or the Syrian people will continue to fight until militarily they oust him,” Jubeir said.

(Additional reporting by Lisa Barrington in Beirut and Stephanie Nebehay in Geneval; Writing by Tom Perry; Editing by Giles Elgood)

U.N. team calls destruction in Iraq’s Ramadi ‘staggering’

BAGHDAD (Reuters) – Destruction in Ramadi is “staggering” and worse than anywhere else in Iraq, a U.N. team concluded this week after making the first assessment visit to the city since its recapture from Islamic State.

It said the main hospital and train station had both been destroyed, along with thousands of other buildings. Local officials told the UN team 64 bridges and much of the electricity grid had been ruined.

Iraqi forces declared victory over the jihadist group in Ramadi in December and has since cleared most of the western Iraqi city. Islamic State fighters still hold pockets in the northern and eastern outskirts.

Its recovery boosted Prime Minister Haider al-Abadi in his campaign to oust the militants from their northern stronghold of Mosul later this year.

But more than six months of fighting shattered most infrastructure and leveled many homes in Ramadi, the Anbar provincial capital where around half a million people once lived.

The fighting saw Islamic State bomb attacks and devastating U.S.-led coalition air strikes.

“The destruction the team has found in Ramadi is worse than any other part of Iraq. It is staggering,” said Lise Grande, the United Nations’ humanitarian coordinator in Iraq.

The two-day assessment found that nearly every building had been damaged or destroyed in frontline areas. In other districts, one in three or four buildings were damaged, it said.

U.N. analysis of satellite imagery last month showed nearly 5,700 buildings in Ramadi and its outskirts had been damaged since mid-2014, with almost 2,000 completely destroyed.

Grande said it was too early to say how much time and money it would take to rebuild.

The cash-strapped government in Baghdad is appealing to international donors to help the city, the largest retaken from Islamic State. It must first clear bombs planted by the militants in streets and buildings – an effort which also requires funding it lacks.

The assessment team said the greatest concentration of such explosives was reported in south-central Ramadi.

The United Nations is working with local authorities on plans to rebuild health, water and energy infrastructure.

The U.N. team said a water plant in central Ramadi could probably be repaired quickly.

It said it had identified four potential relocation sites for returning civilians. Iraq’s central government has yet to give the all-clear for the return of residents.

(Reporting by Stephen Kalin; editing by Andrew Roche)

North Korea fires projectiles after new U.N. sanctions

SEOUL (Reuters) – North Korea fired several short-range projectiles into the sea on Thursday, hours after the U.N. Security Council voted to impose tough new sanctions on the isolated state and the South Korean president vowed to end Pyongyang’s “tyranny.”

The firing escalated tensions on the Korean peninsula, which have been high since North Korea recent nuclear test and long-range rocket launch, and set the South’s military on a heightened alert.

South Korea’s Defence Ministry said it was trying to determine if the projectiles, launched at 10 a.m. from the North’s east coast, were short-range missiles or artillery fire.

The firing came after the U.N. Security Council passed a unanimous resolution on Wednesday dramatically expanding sanctions on North Korea following its fourth nuclear test on Jan. 6 and a long-range rocket launch on Feb. 7.

Russian U.N. Ambassador Vitaly Churkin said North Korea’s action showed it had not taken the proper lesson from the latest round of sanctions.

A spokesman for the U.S. State Department said Pyongyang should “refrain from provocative actions that aggravate tensions and instead focus on fulfilling its international obligations,” while a Chinese Foreign Ministry spokesman said China hoped all parties could refrain from actions that escalate tension.

Japan’s U.N. ambassador, Motohide Yoshikawa, said the firing was North Korea’s reaction to the latest sanctions and, “They may do something more.”

South Korean President Park Geun-hye welcomed the tougher Security Council sanctions and repeated a call for North Korea to change its behavior.

“We will cooperate with the world to make the North Korean regime abandon its reckless nuclear development and end tyranny that oppresses freedom and human rights of our brethren in the North,” Park said at a Christian prayer meeting.

Park has been tough in her response to the North’s recent actions, moving from her earlier self-described “trustpolitik.”

Last month, Seoul suspended the operation of a jointly run factory project with North Korea that had been the rivals’ last remaining venue for regular interaction.

On Thursday, South Korea adopted a long-delayed security law to set up an anti-espionage unit and another law aimed at improving human rights in North Korea.

In its latest barrage of insults against South Korea’s leader, North Korea’s official media carried a commentary on Wednesday likening Park to an “ugly female bat,” fated to “die in the dreary cave, its body hanging down.”

(Additional reporting by Jessica Macy Yu in BEIJING David Brunnstrom in WASHINGTON and Michelle Nichols and Louis Charbonneau at the UNITED NATIONS; Editing by Alex Richardson and Bill Trott)

EU considers more North Korea sanctions after U.N. vote, diplomats say

BRUSSELS (Reuters) – The European Union is considering additional measures against North Korea following the approval of harsh new sanctions by the U.N. Security Council in order to show solidarity with South Korea and Japan, both major trade partners, diplomats said.

EU foreign policy chief Federica Mogherini has welcomed Wednesday’s U.N. unanimous vote to expand existing sanctions following North Korea’s latest nuclear test and rocket launch, saying the bloc would update its sanctions regime.

“There is scope for the European Union to adopt additional autonomous restrictive measures to complement and reinforce the new U.N. measures,” said a diplomatic note seen by Reuters on the latest discussions.

Germany, France, Spain and Poland want to see what more the bloc can do in areas such as finance and insurance, as well as hitting more North Koreans with asset freezes.

Germany, one of seven EU member states to have an embassy in Pyongyang, also wants better monitoring of the “non-diplomatic” activities of North Korean envoys, EU diplomats said.

While far from Europe, North Korea is a concern to NATO and to the EU’s Asian trade partners.

“This is about supporting our allies Japan and South Korea, who are directly threatened by North Korea’s aggression,” said one EU diplomat involved in the discussions on further measures.

The foreign ministers of South Korea and Japan, which are both in range of North Korea’s ballistic missiles, have phoned Mogherini in recent weeks to urge maximum pressure on Pyongyang.

But the EU’s leverage over the isolated communist state is limited because Germany, Sweden and others are unwilling to cut diplomatic ties. Sweden, present in Pyongyang since the 1970s, is among those providing humanitarian aid to North Koreans.

Given that the United States says the new United Nations sanctions go further than any other U.N. sanctions regime in two decades, the EU’s measures, once updated, also leave little room to go further and new steps still need to be discussed.

Trade between the 28-nation European Union and North Korea fell to just 34 million euros in 2014 from more than 300 million euros a decade ago.

EU foreign ministers have reinforced their sanctions several times in recent years to include asset freezes and bans on financing and the delivery of banknotes.

EU countries also cannot export arms or metals used in ballistic missile systems and are banned from selling gold, diamonds and luxury goods to North Korea. Joint ventures are outlawed.

(Editing by Gareth Jones)

U.N. imposes harsh new sanctions on North Korea over its nuclear program

By Louis Charbonneau and Michelle Nichols

UNITED NATIONS (Reuters) – North Korea faces harsh new U.N. sanctions to starve it of money for its nuclear weapons program following a unanimous Security Council vote on Wednesday on a resolution drafted by the United States and Pyongyang’s ally China.

The resolution, which dramatically expands existing sanctions, follows North Korea’s latest nuclear test on Jan. 6 and a Feb. 7 rocket launch that Washington and its allies said used banned ballistic missile technology. Pyongyang said it was a peaceful satellite launch.

U.S. Ambassador Samantha Power said the sanctions go further than any U.N. sanctions regime in two decades and aim to cut off funds for North Korea’s nuclear and other banned weapons programs.

All cargo going to and from North Korea must now be inspected and North Korean trade representatives in Syria, Iran and Vietnam are among 16 individuals added to a U.N. blacklist, along with 12 North Korean entities.

Previously states only had to inspect such shipments if they had reasonable grounds to believe they contained illicit goods.

“Virtually all of the DPRK’s (North Korea) resources are channeled into its reckless and relentless pursuit of weapons of mass destruction,” Power told the council after the vote, adding that the cargo inspection provisions are “hugely significant.”

U.N. Secretary-General Ban Ki-moon welcomed the 15-nation council’s move, saying in a statement that Pyongyang “must return to full compliance with its international obligations.”

North Korea has been under U.N. sanctions since 2006 because of its four nuclear tests and multiple rocket launches.

After nearly two months of bilateral negotiations that at one point involved U.S. President Barack Obama and his Chinese counterpart, Xi Jinping, China agreed to support the unusually tough measures intended to persuade its close ally to abandon its atomic weapons program.

China’s Ambassador Liu Jieyi called for a return to dialogue, saying: “Today’s adoption should be a new starting point and a paving stone for political settlement of the nuclear issue on the Korean Peninsula.”

However, he reiterated Beijing’s concerns about the possible deployment of an advanced U.S. missile system in South Korea.

“At this moment all parties concerned should avoid actions that will further aggravate tension on the ground,” he said. “China opposes the deployment of the THAAD anti-missile system … because such an action harms the strategic and security interests of China and other countries of the region.”

He was referring to the U.S. Terminal High Altitude Area Defense (THAAD) system.

There was no immediate reaction from the North Korean U.N. mission. The official North Korean news agency KCNA said on Monday the proposed sanctions were “a wanton infringement on (North Korea’s) sovereignty and grave challenge to it.”

Shortly after the U.N. move, the U.S. Treasury Department said it was blacklisting two entities and 10 individuals for ties to North Korea’s government and its banned weapons programs, and said the State Department was also blacklisting three entities and two individuals for similar reasons.

The new U.N. sanctions close a gap in the U.N. arms embargo on Pyongyang by banning all weapons imports and exports.

The Security Council’s list of explicitly banned luxury goods has been expanded to include luxury watches, aquatic recreational vehicles, snowmobiles worth more than $2,000, lead crystal items and recreational sports equipment.

There is also an unprecedented ban on the transfer to North Korea of any item that could directly contribute to the operational capabilities of its armed forces, such as trucks that could be modified for military purposes.

The new U.N. measures also blacklist 31 ships owned by North Korean shipping firm Ocean Maritime Management Company (OMM).

Added to the U.N. sanctions list was the National Aerospace Development Agency, or NADA, the body responsible for February’s rocket launch.

Newly blacklisted individuals include a senior official in North Korea’s long-range missile program, senior officials at NADA, officials for Tanchon Commercial Bank in Syria and Vietnam, and Korea Mining Development Trading Corporation (KOMID) representatives in Iran and Syria.

An earlier draft would have blacklisted 17 individuals but the proposed designation of a KOMID representative in Russia was dropped from the final version of the resolution.

(Reporting by Louis Charbonneau and Michelle Nichols; Editing by James Dalgleish)

South Korea demands more sanctions on ‘serial offender’ North

By Stephanie Nebehay and Tom Miles

GENEVA (Reuters) – South Korea’s foreign minister called on the U.N. Security Council to expand sanctions on North Korea on Wednesday to punish what he called an escalating and increasingly threatening nuclear program.

Yun Byung-se called North Korea a “serial offender” and denounced Pyongyang’s fourth nuclear test and latest long-range missile launch, carried out in January and February.

North Korea’s Ambassador Se Pyong So said his country’s nuclear program was designed to ensure peace on the divided Korean peninsula, and warned that more sanctions would bring a “tougher reaction”.

Both men addressed the U.N.-backed Conference on Disarmament in Geneva hours before major powers were scheduled to vote at the U.N. Security Council across the Atlantic on a resolution to expand sanctions on North Korea.

The United States also condemned Pyongyang’s actions.

“The international community stands united in its firm opposition to the DPRK’s development and possession of nuclear weapons,” Christopher Buck, deputy U.S. disarmament ambassador, told the Geneva talks.

“We do not and will not accept North Korea as a nuclear-armed state.”

LANDMARK RESOLUTION

After nearly two months of bilateral negotiations, China last month agreed to support new measures in the Security Council to try and persuade its ally North Korea to abandon its atomic weapons program.

Pyongyang has been under U.N. sanctions since 2006 because of its nuclear tests and multiple rocket launches.

“It’s no wonder that the Security Council will very soon put up a landmark resolution with the strongest ever non-military sanction measures in seven decades of U.N. history,” South Korea’s Yun said.

The credibility of the nuclear non-proliferation regime needed to be protected, he added.

“Even at this moment, Pyongyang is accelerating its nuclear weapons and missile capabilities from nuclear bombs and hydrogen bombs to ICBMs and SLBMs,” he said referring to intercontinental ballistic missiles and submarine-launched ballistic missiles.

“We have heard Pyongyang officially state its intention not only to further develop its nuclear weapons and missiles but also to use them.”

Japan’s parliamentary vice-minister for foreign affairs, Masakazu Hamachi, said North Korea’s actions had undermined the security of Northeast Asia and the rest of the world.

North Korea’s envoy retorted that the nuclear program was “not directed to harm the fellow countryman but to protect peace on the Korean Peninsula and security in the region from the U.S. vicious nuclear war scenario.”

“The more sanctions will bring about tougher reaction,” So said.

(Reporting by Tom Miles and Stephanie Nebehay; writing by Stephanie Nebehay; Editing by Andrew Heavens and John Stonestreet)