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Russian smugglers are reportedly undercutting sanctions against North Korea with secret aid

Sep 12, 2017, 09:09 IST

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As the UN Security Council voted to apply more economic pressure against North Korea on Monday, Russian smugglers have been shipping petroleum and other goods to the regime, US officials said in a Washington Post report.

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The report published Monday night cited official documents that showed increased tanker activity between North Korean shipping ports and the eastern Russian city of Vladivostok.

Smuggled supplies included diesel fuel and other goods that the isolated country could not produce themselves. According to US law-enforcement officials, Russian entrepreneurs were creating front companies to hide their activity and launder funds.

In one case, a Singapore-registered real-estate management company with no known offices or webpage was "facilitating the laundering of funds for North Korea financial facilitators and sanctioned entities" by working with Russian partners to buy almost $7 million worth of diesel fuel. North Korean agents would then wire US dollars to the company, which in turn would pay a Russian supplier to make diesel shipments from Vladivostok.

"As the Chinese cut off oil and gas, we're seeing them turn to Russia," one senior official familiar with the smuggling operation told The Post. "Whenever they are cut off from their primary supplier, they just try to get it from somewhere else."

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News of the smuggling operations comes amid a unanimous vote from the UN Security Council in response to North Korea's sixth and most powerful nuclear test on September 3. The new sanctions impose a ban on North Korea's textile exports and caps crude-oil exports to North Korea.

In this July 22, 2016 photo, Kim Chol Ho, the deputy manager of Rajin port, in North Korea's Rason Special Economic Zone, looks out at small fishing boats near the &quotRussian Wharf," where coal is brought in for transshipment to China. Even as North Korea is facing tough sanctions, the zone is by North Korean standards thriving. For countries spearheading efforts to impose even stronger sanctions against the North for its recent nuclear test, it's an irritating reminder that not everyone is onboard with the idea of shutting off trade with Pyongyang, especially when there is money to be made.Eric Talmadge/AP

The uptick in traffic between the two countries also coincided with previous UN sanctions that banned fuel shipments from a state-owned company from China. Facing pressure from the US and North Korea's wary neighbors in South Korea and Japan, China agreed to apply more pressure to the Kim Jong Un regime.

Meanwhile, the Kremlin appeared to be reluctant in agreeing to increased sanctions on North Korea. Russian President Vladimir Putin called for more diplomacy and stressed that tinkering with North Korea's oil supplies would have a detrimental effect.

"We, too, are against North Korea developing its nuclear capabilities and condemn it, but it is worrying cutting the oil pipeline will harm the regular people, like in hospitals," Putin said during a meeting with South Korean President Moon Jae-in on Wednesday.

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NOW WATCH: The US conducted bombing drills with advanced warplanes as a 'direct response' to North Korea's missile launch over Japan

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