Tag Archives: North Korea and Syrian Nonproliferation Act (INKSNA)

The Hide and Seek with North Korea and Assists

North Kora cargo ship at Nampo

China, Russia and other countries are failing to rein in North Korea’s illicit financing and weapons proliferation activity, according to a new United Nations report…Their draft report, distributed late the week of Feb. 1, 2018 to a U.N. committee overseeing North Korea sanctions compliance before it heads to the Security Council, details the many ways that Pyongyang is sidestepping bans on trade, finance and weapon sales, according to people who have read the document. The report was also reviewed by The Wall Street Journal.,,,

The report also cites evidence from a member country that Myanmar is buying a ballistic-missile system and conventional weapons from North Korea, including rocket launchers and surface-to-air missiles. Intelligence provided to the investigators suggest Myanmar… is seeking items that are controlled by nuclear and other major weapon proliferation agreements.

The U.N. investigators criticized China, Russia, Malaysia and other countries for failing to do enough to curb illicit finance and trade being conducted in their countries. Roughly $200 million in North Korean coal and other commodities was exported in violation of U.N. bans, the panel said.

Much of North Korea’s coal and fuel shipments went through Chinese, Malaysian, Vietnamese or Russian ports. More than 30 representatives of North Korean financial institutions have been operating abroad, including in China and Russia, the investigators say.

U.N. investigators, citing member-country intelligence, said North Korean ballistic-missile technicians visited Syria several times in 2016 and continue to operate at three sites in the country. They also cited evidence that Syria had received valves and special acid-resistant tiles that are known to be used in chemical-weapons programs.There were enough tiles, according to the U.N. panel’s inspection of interdicted cargo, for a large-scale, high-temperature industrial project. According to one member state, the tiles could be used to build the interior walls of a chemical factory. Two shipments interdicted in late 2016, according to the report, contained enough valves, pipes and cables to build a large-scale industrial project.

 

U.N. Report Faults China, Russia for Subverting North Korea Sanctions, WSJ, Feb. 3, 2018

Co-Dependent Enemies: US Sanctions and the Russian Titanium

Ttitanium tube containing the Russian flag, in the Arctic seabed 2007

The United States imposed sanctions on Russia’s state arms export agency and four defense industry enterprises for alleged violations of international arms control regimes restricting export of nuclear and missile technologies to Iran, North Korea and Syria on Wednesday.

A notice posted on the U.S. government’s Federal Register on the State Department’s behalf on September 2, 2015 said the move was a response to violations of the Iran, North Korea and Syrian Nonproliferation Act (INKSNA).  The act prohibits the transfer of goods, services and technologies restricted under international arms control agreements such as the Missile Technology Control Regime to Iran, North Korea and Syria.

A spokesman from the U.S. Embassy in Moscow, Will Stevens, told The Moscow Times that the Russian entities sanctioned under the act were among 23 foreign entities — including firms and entities based in China, Turkey and the United Arab Emirates — found to be engaging in violations of arms export conventions.

Russian arms export agency Rosoboronexport said it was unable to comment on the issue at this time.  The Russian defense industry firms that were involved in the alleged INKSNA violations were fighter jet manufacturer MiG, the high-precision weapons maker Instrument Design Bureau (KBP) Tula, NPO Mashinostroyenia — a rocket and missile design bureau in Reutov, outside Moscow — and Katod in Novosibirsk, which makes night-vision optics, among other things. The sanctions prevent any U.S. companies or government agencies from doing business with the sanctioned Russian arms entities.

The U.S. did not specify which arms deals in particular triggered the latest sanctions actions imposed on Russia’s defense industry…

Vadim Kozyulin of the Moscow-based PIR Center think tank argued that the imposition of sanctions under the Iran, North Korea and Syria Non-Proliferation Act was politically motivated …Kozyulin speculated that the arms transfers in question are deliveries to Syrian President Bashar Assad’s embattled regime, or the expected future delivery of advanced S-300 air defense systems to Iran — which, he pointed out, is not prohibited by any United Nations resolutions governing arms sales to Iran…

Russia’s largest arms export partners are nations such as China, India and Algeria…“This is not the first time that the U.S. has imposed sanctions on Russian defense companies,” Kozyulin noted. “I used to compile a list of such cases and I guess that you can count about 40 to 50 times when Russian companies were sanctioned by the U.S. since 1998.”…

However, Yury Barmin, an independent Russian expert on the global arms trade, said that “some Russian companies may import spare parts from the U.S. and the latest sanctions may force them to revise their procurement strategies and delay some outstanding orders.”…
Russians responded to the timing of the U.S. decision to place sanctions on 23 global entities for alleged INKSNA violations by accusing Washington of pursuing and protecting its own interests in the global arms market. Barmin argued that Wednesday’s sanctions were only implemented after the completion of a Pentagon contract with Rosoboronexport to deliver 30 Russian-built Mi-17 helicopters to the Afghan military in the wake of NATO’s withdrawal.“Now that this deal has been concluded the U.S. deemed it possible to impose sanctions,” he said.

The CEO of Russian defense firm Katod, which was producing night-vision goggles for sale on the U.S. market, told  that his company was sanctioned because the U.S. feared Russian competition in this segment of the arms market….

Barmin too pointed to the lack of contact with U.S. financial institutions and argued that existing measures will have little impact, “unless Rosoboronexport [is] prevented from performing banking transactions globally, which would imply cutting Russia off from SWIFT altogether.”

If the tit-for-tat game of sanctions with Russia continues, and the U.S. manages to cause significant damage to the Russian defense industry, Kozyulin pointed out that Russia holds certain trump cards that it could use to fight back at the U.S. defense industry.  “For example, Russian titanium,” which is used for Boeing aircraft, “and engines for space rockets might be prohibited for export to the U.S.”

Excerpts from Matthew Bodner, U.S. Sanctions Russian Arms Export Agency for Non-Proliferation Violation, Moscow Times, Sept. 2, 2015