US blacklists Russian bank over North Korea sanctions

By Michael Hernandez

WASHINGTON

The U.S. on Friday blacklisted a Russian bank, an individual and two entities for allegedly violating U.S. and UN sanctions.

Russia's Agrosoyuz Commercial Bank was sanctioned for facilitating a "significant transaction" with Han Jang Su, whom the Treasury Department said is the Moscow-based chief representative of North Korea’s main foreign exchange bank.

Han was designated by the U.S. in March 2017, and his bank, known as Foreign Trade Bank, was sanctioned in 2013. He was later sanctioned by the UN in August 2017.

The Treasury Department further sanctioned Ri Jong Won, Han's deputy, on Friday.

The U.S. said under a 2016 UN Security Council resolution Han and Ri should be expelled from Russia because it has determined they work on behalf of a North Korean bank or financial institution.

The Treasury Department further designated what it called two "front companies" for the North's Foreign Trade Bank: Dandong Zhongsheng Industry & Trade Co., and Korea Ungum Corporation.

“The United States will continue to enforce UN and U.S. sanctions and shut down illicit revenue streams to North Korea. Our sanctions will remain in place until we have achieved the final, fully-verified denuclearization of North Korea,” Treasury Secretary Steven Mnuchin said in a statement.

The U.S. separately announced it submitted a list of sanctions proposals to the UN Security Council as "part of a coordinated U.S. government effort to continue to implement existing sanctions, both domestic and multilateral, and cut off North Korea’s illicit financial activities."

"The United States has been clear that if the international community wants to achieve the final, fully verified denuclearization of North Korea, the best way to support that process is to remain vigilant in applying the current sanctions to their full extent," the U.S.'s UN mission said in a statement.

On Thursday, the Wall Street Journal reported Russia issued work permits to thousands of new North Korean laborers in contravention of UN sanctions.

Russia has denied the report, but the U.S.'s UN envoy called it "credible" and "deeply troubling."

"These reports are especially concerning as they come just one month after Russia refused to acknowledge North Korea’s violations of the UN oil cap and blocked a United States request to enforce sanctions and put a stop to it," Nikki Haley said in a statement. "Talk is cheap – Russia cannot support sanctions with their words in the Security Council only to violate them with their actions."

‘Show-off act’

Russian Deputy Foreign Minister Sergey Ryabkov dubbed the U.S. sanctions as “a show-off act” ahead of November elections.

In a statement, Ryabkov said Washington imposed sanctions on Russia for the 54th time. “It shows that American sanctions do not work,” he added.

"This absurd show-off act by the senators and congressmen before the American public, in hope to be best remembered by the voters ahead of the November elections, give us a smile," he said.

The U.S. is "blinded by the belief in the steadfastness of the American hegemony in the world", and no sanctions will "turn Russia from its path,” Ryabkov added.