U.S. to sanction cyber attackers, cites Russia, China

US sanctioning cyber attackers

WASHINGTON (Reuters) – The United States will use sanctions against those behind cyber attacks that target transportation systems or the power grid, the White House said on Tuesday, citing Russia and China as increasingly assertive and sophisticated cyber operators.

The sanctions will be used “when the conditions are right and when actions will further U.S. policy,” White House counter terrorism adviser Lisa Monaco said in prepared remarks to a cyber security conference.

Monaco cited an “increasingly diverse and dangerous” global landscape in which Iran has launched denial-of-service attacks on U.S. banks and North Korea has shown it would conduct destructive attacks.

“To put it bluntly, we are in the midst of a revolution of the cyber threat – one that is growing more persistent, more diverse, more frequent and more dangerous every day,” she said.

The United States is working with other countries to adopt voluntary norms of responsible cyber behavior and work to reduce malicious activity, she said. At the same time, it will use an executive order authorizing sanctions against those who attack U.S. critical infrastructure.

Monaco introduced a new directive from President Barack Obama that establishes a “clear framework” to coordinate the government’s response to cyber incidents.

“It will help answer a question heard too often from corporations and citizens alike – ‘In the wake of an attack, who do I call for help?'” she said.

(Reporting by Doina Chiacu; Editing by Jonathan Oatis)

U.S. sanctions North Korean leader for first time over human rights

North Korean leader Kim Jong Un posing with school children

By David Brunnstrom and James Pearson

WASHINGTON/SEOUL (Reuters) – The United States on Wednesday sanctioned North Korean leader Kim Jong Un for the first time, citing “notorious abuses of human rights,” in a move diplomats say will infuriate the nuclear-armed country.

The sanctions, the first to target any North Koreans for rights abuses, affect property and other assets within the U.S. jurisdiction. They include 10 other individuals besides Kim and five government ministries and departments, the U.S. Treasury Department said in a statement.

“Under Kim Jong Un, North Korea continues to inflict intolerable cruelty and hardship on millions of its own people, including extrajudicial killings, forced labor, and torture,” Acting Undersecretary for Terrorism and Financial Intelligence Adam J. Szubin said in the statement.

But inside North Korea, adulation for Kim, 32, is mandatory and he is considered infallible. A 2014 report by the United Nations, which referred to Kim by name in connection to human rights, triggered a strong reaction from Pyongyang, including a string of military provocations.

Earlier this year, Congress passed a new law requiring U.S. President Barack Obama to deliver a report within 120 days to Congress on human rights in North Korea. It had designate for sanctions anyone found responsible for human rights violations. Kim Jong Un, the third generation of his family to rule the Stalinist state, topped the list.

The U.S. Treasury Department identified Kim’s date of birth as Jan. 8, 1984, a rare official confirmation of the young leader’s birthday.

Many of the abuses are in North Korea’s prison camps, which hold between 80,000 and 120,000 people including children, the report said.

The five agencies designated were two ministries that run North Korea’s secret police and their correctional services, which operate the prison camps. Also named were the ruling Workers’ Party’s Organization and Guidance Department (OGD), a key bureau used by Kim to wield control of the party and the government.

The sanctions also named lower-level officials, such as Minister of People’s Security Choe Pu Il, as directly responsible for abuses.

FORCED LABOR

Senior U.S administration officials said the new sanctions showed the administration’s greater focus on human rights in North Korea, an area long secondary to Washington’s efforts to halt Pyongyang’s nuclear and missile programs.

The report was “the most comprehensive” to date on individual North Korean officials’ roles in forced labor and repression.

They said the sanctions would be partly “symbolic” but hoped that naming mid-level officials may make functionaries “think twice” before engaging in abuses. “It lifts the anonymity,” a senior administration official told reporters.

The North Korea mission to the United Nations did not respond to a request for comment.

South Korea, which cut off all political and commercial ties with its own sanctions against the North in February, welcomed the move, saying it will encourage greater international pressure on the North to improve its human rights record.

China’s foreign ministry, asked about the new sanctions, reiterated its policy of opposing unilateral sanctions.

U.N. Secretary General Ban Ki-moon, visiting Beijing on Thursday, said he is very concerned about rising tension on the Korean peninsula and called on North Korea to refrain from making any provocations.

MORE SANCTIONS TO COME

Using sanctions against a head of state is not unprecedented. In 2011, the United States sanctioned Syrian President Bashar al-Assad and six other senior Syrian officials for their role in Syria’s violence. Former Libyan leader Muammar Gaddafi was also sanctioned.

Policymakers often worry that targeting a country’s leader will destroy any lingering chance of rapprochement, former diplomats say.

It is a sign “there probably isn’t much of a hope for a diplomatic resolution,” said Zachary Goldman, a former policy adviser in the U.S. Treasury’s Office of Terrorism and Financial Intelligence.

The new sanctions follow a long list of measures that have had little effect in pressuring North Korean leaders to change, experts who study the North’s political system said.

“The sanctions from today will do nothing whatsoever to alter North Korea’s strategic calculus and only underscore their thinking that the U.S. has a ‘hostile policy’ against their country,” said Michael Madden an expert on the North Korean leadership.

“Considering the sanctions name Kim Jong Un, the reaction from Pyongyang will be epic,” he said. “There will be numerous official and state media denunciations, which will target the U.S. and Seoul, and the wording will be vituperative and blistering.”

Peter Harrell, a former State Department sanctions official, said the measures would signal to companies in China, as well as others doing business with North Korea, the U.S. would continue escalating sanctions.

Harrell added it was unlikely any assets would be blocked, however “given the realities of where Kim Jong Un and his cronies likely hide their assets.”

In March, the U.N. Security Council imposed harsh new sanctions on the country in response to its nuclear and missile tests.

That same month, Obama imposed new sanctions on North Korea after it conducted its fourth nuclear test and a rocket launch that Washington and its allies said employed banned ballistic missile technology.

Those steps froze any property of the North Korean government in the U.S. and essentially prohibited exports of goods from the U.S. to North Korea.

“The United States has maintained sanctions and pressure against the North for 65 years since the Korean War, but there’s not been a single case where the intended result was accomplished,” said Yang Moo-jin of the University of North Korean Studies in Seoul.

“How much time is left in the Obama administration? There may be the wish to prove the policy of ‘strategic patience’ against the North has not failed, but when it comes to practical results, there won’t be much to show,” Yang said.

(Additional reporting by Patricia Zengerle, Yeganeh Torbati and Joel Schectman in Washington, Michelle Nichols at the United Nations and Ben Blanchard in Beijing; Editing by Yara Bayoumy and Bill Tarrant)

U.N. Security Council condemns North Korea missile launches

part of a North Korean missile washed up on Japanese beach

By Michelle Nichols

UNITED NATIONS (Reuters) – The United Nations Security Council on Thursday condemned North Korea’s most recent ballistic missile launches as a grave violation of an international ban and called on the 193 U.N. member states to enforce toughened sanctions on the Asian state.

North Korea, or the Democratic People’s Republic of Korea, launched what appeared to be an intermediate-range missile on Wednesday to a high altitude in the direction of Japan before it plunged into the sea about two hours after a similar test failed.

“The members of the Security Council deplore all DPRK ballistic missile activities noting that such activities contribute to the DPRK’s development of nuclear weapons delivery systems and increase tension,” the 15-member body said.

“The members of the Security Council further regretted that the DPRK is diverting resources to the pursuit of ballistic missiles while DPRK citizens have great unmet needs,” it said.

After supervising the missile launches, North Korea leader Kim Jong Un said his country now has the capability to attack U.S. interests in the Pacific, official media reported.

The U.N. Security Council met on Wednesday evening to discuss the missile launches. The statement issued on Thursday is almost identical to a condemnation by the council on June 1 over several previous ballistic missile tests by Pyongyang.

U.S. Ambassador Samantha Power signaled that the United States would seek “to identify individual, entities who may be responsible for this repeated series of tests” and could be sanctioned by the Security Council.

North Korea has been under U.N. sanctions since 2006. In March, the Security Council imposed harsh new sanctions on the country in response to North Korea’s fourth nuclear test in January and the launch of a long-range rocket in February.

Power said that since the new sanctions were imposed in March North Korea had carried out 10 ballistic missile tests.

“As DPRK continues to test these delivery systems they make progress and they learn things and thus it is extremely important that we come together and we address any hidden gaps there may be in the enforcement” of the March resolution, Power said on Wednesday.

(Reporting by Michelle Nichols; Editing by Chizu Nomiyama)

Europe steps up North Korea sanctions with oil, finance bans

North Korean leader Kim Jong Un speaks during a ceremony at the meeting hall of the Central Committee of the Workers' Party of Korea

By Robin Emmott

BRUSSELS (Reuters) – The European Union stepped up its sanctions on North Korea on Friday with near-blanket trade and travel bans after Pyongyang’s latest nuclear test and rocket launch, a move going beyond new U.N. Security Council sanctions.

Pyongyang is also banned from selling any oil-related or luxury goods to the European Union, while EU nations cannot invest in the country’s mining, refining and chemical industries.

“Considering that the actions of (North Korea) constitute a grave threat to international peace and security in the region and beyond, the EU decided to further expand its restrictive measures,” the Council said.

North Korea’s latest nuclear test was on Jan. 6. On Feb. 7, it launched a rocket that the United States said used banned ballistic missile technology. Pyongyang said it was a peaceful satellite launch.

The EU measures, which diplomats say are designed to show solidarity with major EU trade partners South Korea and Japan, come on top of asset freezes and travel bans for another 16 North Koreans agreed earlier this year. That puts 66 people and 42 companies under the EU sanctions regime.

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 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.

However, the impact of the new measures is likely to be limited as trade between the European Union and North Korea fell to just 34 million euros in 2014 from more than 300 million euros a decade ago.

Germany and Sweden are also reluctant to totally isolate North Korea. They have maintained diplomatic ties in Pyongyang since the 1970s, providing humanitarian aid to North Koreans.

(Reporting by Robin Emmott; Editing by Tom Heneghan)

Iran determined to regain oil market share

A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Gulf

LONDON (Reuters) – Iran is determined to recover its share of the world oil market following the lifting of sanctions, and can withstand low prices since it has sold oil for as little as $6 a barrel in the past, a source close to Iranian oil policy said.

The source was speaking after Russia, one of the participants at last weekend’s meeting of oil producing nations which failed to deliver an agreement to freeze output, indicated it could raise supply.

“We paid for our barrels with our centrifuges,” the source said, referring to Iran’s acceptance of curbs on its nuclear program in order for Western sanctions on Tehran to be lifted.

“We are going to get our share back. For us, oil is only 12 percent of our GDP. We used to sell oil in the war (between Iran and Iraq in the 1980s) at $6 a barrel.”

He added any agreement to restrain supply at the next OPEC meeting in June depended on Saudi Arabia and non-member Russia.

“If June is going to produce an agreement, you have to ask Saudi Arabia and Russia. They are the problem.”

(Reporting by Alex Lawler; Editing by Dmitry Zhdannikov and Mark Potter)

Obama slaps new sanctions on North Korea after tests

WASHINGTON (Reuters) – President Barack Obama imposed sweeping new sanctions on North Korea on Wednesday intended to further isolate the country’s leadership after recent actions by Pyongyang that have been seen by Washington and its allies as provocative.

The executive order freezes any property of the North Korean government in the United States and prohibits exportation of goods from the United States to North Korea.

It also allows the U.S. government to blacklist any individuals, whether or not they are U.S. citizens, who deal with major sectors of North Korea’s economy. Experts said the measures vastly expanded the U.S. blockade against Pyongyang.

North Korea conducted a nuclear test on Jan. 6, and a Feb. 7 rocket launch that the United States and its allies said employed banned ballistic missile technology. Pyongyang said it was a peaceful satellite launch.

“The U.S. and the global community will not tolerate North Korea’s illicit nuclear and ballistic missile activities, and we will continue to impose costs on North Korea until it comes into compliance with its international obligations,” White House spokesman Josh Earnest said.

Despite decades of tensions, the United States has not had a comprehensive trade ban against North Korea of the kind enacted against Myanmar and Iran. Americans were allowed to make limited sales to North Korea, although in practice such trade was tiny.

U.S. officials had believed a blanket trade ban would be ineffective without a stronger commitment from China, North Korea’s largest trading partner. But with China signing on to new U.N. sanctions earlier this month, that obstacle has been removed, experts said.

“North Korean sanctions are finally getting serious,” said Peter Harrell, a former senior State Department official who worked on sanctions.

The new sanctions threaten to ban from the global financial system anyone, even Europeans and Asians, who does business with broad swaths of Pyongyang’s economy, including its financial, mining and transportation sectors.

The so-called secondary sanctions will compel banks to freeze the assets of anyone who breaks the blockade, potentially squeezing out North Korea’s business ties in China and Myanmar.

“It’s going to be very hard for North Korea to move money anywhere in the world,” said Harrell, now with the Center for a New American Security.

(Additional reporting by Jeff Mason; Editing by James Dalgleish and Peter Cooney)

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)

U.N. delays vote on tough new North Korea sanctions at Russia’s request

UNITED NATIONS (Reuters) – The United Nations Security Council delayed until Wednesday a vote on a U.S.-Chinese drafted resolution that would dramatically expand U.N. sanctions on North Korea after Russia said it needed more time to review the text, diplomats said.

The vote, which had been scheduled for Tuesday afternoon, is now planned for 10 a.m. on Wednesday, the diplomats said on condition of anonymity.

“Subsequent to the United States’ request … to schedule a council vote for this afternoon, Russia invoked a procedural 24-hour review of the resolution, so the vote will be on Wednesday,” the U.S. mission to the United Nations said in a statement to reporters.

The expanded sanctions, if adopted, would require inspections of all cargo going to and from North Korea and blacklisting North Koreans active in Syria, Iran and Vietnam.

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 North Korea to abandon its atomic weapons program.

Last week the United States presented the 15-nation council with the draft resolution that would significantly tighten restrictions after North Korea’s nuclear test and Feb. 7 rocket launch, and create what it described as the toughest U.N. sanctions regime in two decades.

Originally Washington had wanted the council to adopt the resolution last weekend but Russia had demanded more time to study it.

The draft seen by Reuters would require U.N. member states to conduct mandatory inspections of all cargo passing through their territory to or from North Korea to look for illicit goods. Previously states only had to do this if they had reasonable grounds to believe there was illicit cargo.

The list of explicitly banned luxury goods will be expanded to include luxury watches, aquatic recreational vehicles, snowmobiles worth more than $2,000, lead crystal items and recreational sports equipment.

Pyongyang denied the Feb. 7 launch involved banned ballistic missile technology, saying it was a peaceful satellite launch.

The official North Korean news agency KCNA said in a commentary on Monday its “position as a satellite manufacturer and launcher will never change (and) … space development is not something to be given up because of someone’s ‘sanctions’.”

It called the proposed sanctions “a wanton infringement on (North Korea’s) sovereignty and grave challenge to it.”

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

There would also be 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.

Other proposed measures include a ban on all supplies of aviation and rocket fuel to North Korea, a requirement for states to expel North Korean diplomats engaging in illicit activities, and blacklisting 16 North Korean individuals and 12 entities, including the National Aerospace Development Agency, or NADA, the body responsible for February’s rocket launch.

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

Candidates for the blacklist include Choe Chun-sik, who was head of North Korea’s long-range missile program; Hyon Kwang Il, senior official at NADA; Yu Chol U, director of NADA; Jang Bom Sun and Jon Myong Guk, Tanchon Commercial Bank officials in Syria; Jang Yon Son and Kim Yong Chol, Korea Mining Development Trading Corporation (KOMID) representatives in Iran; and Kang Ryong and Ryu Jun, KOMID representatives in Syria.

Two Tanchon bank representatives in Vietnam are also to be blacklisted.

In addition to NADA, North Korean entities to be blacklisted include the Academy of National Defense Sciences, Chongchongang Shipping Co and the Ministry of Atomic Energy Industry.

Also new, countries will be required, not just encouraged, to freeze the assets of North Korean entities linked to Pyongyang’s nuclear or missile programs and to prohibit the opening of new branches or offices of North Korean banks or to engage in banking correspondence with them

Officials Announce New Sanctions on ISIS Affiliates

On Tuesday, U.S. government officials announced sanctions against 25 people and groups affiliated with the Islamic State. The announcement has revealed that the Islamic terrorist organization has connections in Europe, Asia, and the Middle East.

The financial sanctions were placed in hopes of interrupting the Islamic State’s financial, logistical, and recruiting operatives who are not suitable targets for drone strikes. Many of the ISIS affiliates operate outside of the war in Iraq and Syria. U.S. officials also hope that the sanctions prevent ISIS fighters from getting supplies and travelling.

The Treasury Department’s sanctions were forced on Islamic State officials who operate in Pakistan, Libya, Yemen, Afghanistan, and Tunisia. Individuals who were sanctioned included was a British national Aqsa Mahmood. Mahmood is accused of recruiting three young British school girls to leave the United Kingdom and become wives of ISIS fighters in February. It is believed that her location is in Syria.

Government officials also reported that the Islamic State’s biggest money-maker is oil sales, taxation, and extortion, which won’t be affected by the sanctions. Daniel Glaser, the Treasury’s assistant secretary for terrorist financing, said that ISIS is making as much as $500 million per year from oil sales, which is beyond their estimated payroll of $360 million a year. Experts are also skeptical of the effectiveness of the sanctions given the extensive smuggling networks in the region.

U.S. President Barack Obama and other world leaders recently discussed the battle against the Islamic State during the address at the General Assembly.

“This is not a conventional battle. This is a long-term campaign — not only against this particular network, but against its ideology,” Obama said.

World leaders still have not come to an overall agreement on how to eradicate ISIS.