Russian-North Korea projects foundering because of missile tests

A guard walks along a platform past signs, which read "Russia" (L) and "DPRK"(Democratic People's Republic of Korea), at the border crossing between Russia and North Korea in the settlement of Tumangan, North Korea July 18, 2014.

By Polina Nikolskaya and Katya Golubkova

MOSCOW (Reuters) – Commercial ventures planned between Russia and North Korea three years ago are not being implemented because of Pyongyang’s missile testing program, the Minister for the Development of the Russian Far East, Alexander Galushka, said.

Russia has been under international scrutiny over North Korea because it has taken a more doveish approach to Pyongyang than Washington, and Russian trade with North Korea increased sharply at the start of this year.

The United States government earlier this month imposed new North Korea-related sanctions that targeted Russian firms and individuals for, it alleged, supporting Pyongyang’s weapons programs and providing oil.

However Galushka, in an interview with Reuters, said Moscow was faithfully implementing the international sanctions regime on North Korea, and held up the stalled bilateral projects as an indication that Pyongyang was paying an economic price for its weapons program.

“Russia has not violated, does not violate and will not work outside the framework (of the resolution) that was accepted by the U.N. Security Council,” said Galushka, who also heads a Russia-North Korean Intergovernmental Commission.

Russian businesses discussed a number of projects with North Korea in 2014. But then North Korea conducted military tests, including some involving nuclear weapons, and the projects became difficult to implement, Galushka said.

One such project, called “Pobeda”, or “Victory,” would have involved Russian investments and supplies that could be exchanged for access to Korean natural resources.

“We told our North Korean partners more than once … that it hampers a lot, makes it impossible, it restricts things, it causes fear,” Galushka said, referring to the weapons testing.

Another joint project between the two countries is a railway link with North Korea, from the Russian eastern border town of Khasan to Korea’s Rajin.

It is operating but below its potential. The link could work at a capacity of 4 million tonnes a year, officials have said previously, but now it only carries around 1.5 million tonnes of coal per year, according to Galushka.

UN sanctions also prohibit countries from increasing the current numbers of North Korean laborers working in their territories.

According to Galushka, around 40,000 employees from North Korea worked in Russia. Mainly they are engaged in timber processing and construction.

Russian business is interested in access to the North Korea workforce, Galushka said, but the numbers will stay in line with what the sanctions permit.

He said 40,000 workers from North Korea “is a balance formed in the economy, neither more nor less.”

Bilateral trade between the two countries has been decreasing for the last four years, from $112.7 million in 2013 to $76.9 million in 2016, according to Russian Federal Customs Service statistics.

But it more than doubled to $31.4 million in the first quarter of 2017 in year-on-year terms. Most of Russia’s exports to North Korea are oil, coal and refined products.

Asked to explain why trade was rising if political issues were hurting commercial projects, a spokeswoman for Galushka’s ministry said in an email: “According to the latest data, there was an objective increase due to exports to North Korea, primarily oil products. But the export of oil does not violate the agreements of the UN countries in any way.”

The interview with Galushka took place before the U.S. imposed the sanctions targeting Russian entities and individuals for trading with North Korea.

Galushka’s ministry referred questions about the new sanctions to the Russian foreign ministry.

Maria Zakharova, a foreign ministry spokeswoman, told reporters Washington’s unilateral sanctions worsened tensions on the Korean peninsula, and that Russia is fulfilling its international obligations in full.

 

(Editing by Andrew Heavens)

 

China issues order to implement U.N. sanctions on North Korea

A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva

BEIJING (Reuters) – China’s Commerce Ministry issued a ban effective from Tuesday on several imports from North Korea, including coal, iron ore, lead concentrates and ore, lead and seafood, a move that is in line with U.N. sanctions announced this month.

Beijing issued the banning order on Monday.

U.N. sanctions must be implemented 30 days after the resolution was approved in a vote on Aug. 6.

The Chinese government said any cargoes already on their way to China would be cleared by customs as usual before the U.N. sanctions deadline.

 

(Reporting by Josephine Mason; Editing by Christian Schmollinger and Edmund Blair)

 

North Korea ready to teach U.S. ‘severe lesson’, says U.N. abused its authority

North Korean Foreign Minister Ri Yong-ho (C) walks toward an escalator during ongoing meetings at the Philippine International Convention Center

MANILA (Reuters) – North Korea is ready to give the United States a “severe lesson” with its strategic nuclear force if it takes military action against it, and will not put its nuclear program or its missiles on the negotiating table, it said in a statement to a regional meeting on Monday.

In a transcript of a statement by Foreign Minister Ri Yong-ho, which was distributed to media in Manila, Pyongyang called new U.N. sanctions “fabricated” and warned there would be “strong follow-up measures” and acts of justice. It said the resolution showed the United Nations had abused its authority.

It said its intercontinental ballistic missile tests in July proved that the entire United States was in its firing range, and those missiles were a legitimate means of self-defense.

It was not immediately clear whether the statement was read to the ASEAN Regional Forum on Monday.

 

 

(Reporting by Neil Jerome Morales and Manolo Serapio Jr; Writing by Martin Petty; Editing by Nick Macfie)

 

Pence warns North Korea of U.S. resolve shown in Syria, Afghan strikes

U.S. Vice President Mike Pence looks toward the north from an observation post inside the demilitarized zone separating the two Koreas, in Paju, South Korea,

By Roberta Rampton and Ju-min Park

SEOUL (Reuters) – U.S. Vice President Mike Pence put North Korea on notice on Monday, warning that recent U.S. strikes in Syria and Afghanistan showed that the resolve of President Donald Trump should not be tested.

Pence and South Korean acting president Hwang Kyo-ahn, speaking a day after a failed missile test by the North and two days after a huge display of missiles in Pyongyang, also said they would strengthen anti-North Korea defences by moving ahead with the early deployment of the THAAD missile-defence system.

Pence is on the first stop of a four-nation Asia tour intended to show America’s allies, and remind its adversaries, that the Trump administration was not turning its back on the increasingly volatile region.

“Just in the past two weeks, the world witnessed the strength and resolve of our new president in actions taken in Syria and Afghanistan,” Pence said in a joint appearance with Hwang.

“North Korea would do well not to test his resolve or the strength of the armed forces of the United States in this region,” Pence said.

The U.S. Navy this month struck a Syrian airfield with 59 Tomahawk missiles after a chemical weapons attack. On Thursday, the U.S. military said it had dropped “the mother of all bombs”, the largest non-nuclear device it has ever unleashed in combat, on a network of caves and tunnels used by Islamic State in Afghanistan.

North Korea’s KCNA news agency on Monday carried a letter from leader Kim Jong Un to Syrian President Bashar al-Assad marking the 70th anniversary of Syria’s independence.

“I express again a strong support and alliance to the Syrian government and its people for its work of justice, condemning the United States’ recent violent invasive act against your country,” Kim said.

On a visit to the border between North and South Korea earlier in the day, Pence, whose father served in the 1950-53 Korean War, said the United States would stand by its “iron-clad alliance” with South Korea.

“All options are on the table to achieve the objectives and ensure the stability of the people of this country,” he told reporters as tinny propaganda music floated across from the North Korean side of the so-called demilitarized zone (DMZ).

“There was a period of strategic patience but the era of strategic patience is over.”

ECONOMIC TALKS

Pence is expected to discuss rising tension on the Korean peninsula with Japanese Prime Minister Shinzo Abe on Tuesday when he travels to Tokyo to kick off economic talks with Finance Minister Taro Aso.

Pence will meet business leaders in Seoul before departing – a “listening session” he will reprise at other stops on his tour in Tokyo, Jakarta and Sydney.

His economic discussions will be closely watched to see how hard a line Washington is prepared to take on trade. Trump campaigned for office on an “America First” platform, and has vowed to narrow big trade deficits with nations like China, Germany and Japan.

But Trump has also shown he is willing to link trade to other issues, saying he would cut a better trade deal with China if it exerts influence on North Korea to curb its nuclear ambitions.

Trump acknowledged on Sunday that the softer line he had taken on China’s management of its currency was linked to its help on North Korea.

The United States, its allies and China are working on a range of responses to North Korea’s latest failed ballistic missile test, Trump’s national security adviser said on Sunday, citing what he called an international consensus to act.

China has spoken out against the North’s weapons tests and has supported U.N. sanctions. It has repeatedly called for talks while appearing increasingly frustrated with the North.

But Pence and Hwang said they were troubled by retaliatory economic moves by China against the deployment in South Korea of a U.S. anti-missile system known as the Terminal High Altitude Area Defense (THAAD).

South Korea, which accuses China or discriminating against some South Korean companies working in China, and the United States say the sole purpose of THAAD is to guard against North Korean missiles.

China says its powerful radar can penetrate its territory and undermine its security and spoke out against it again on Monday.

‘RECKLESS’

Chinese Foreign Ministry spokesman Lu Kang told reporters in Beijing the situation on the Korean peninsula was “highly sensitive, complicated and high risk”, adding all sides should “avoid taking provocative actions that pour oil on the fire”.

Russian Foreign Minister Sergei Lavrov said Moscow could not accept North Korea’s “reckless nuclear actions” but the United States should not take unilateral action against it.

Trump’s national security adviser, H.R. McMaster, indicated on Sunday that Trump was not considering military action against North Korea for now, even as a nuclear-powered aircraft carrier strike group was heading for the region.

“It’s time for us to undertake all actions we can, short of a military option, to try to resolve this peacefully,” he said on ABC’s “This Week” programme.

The Trump administration is focusing its strategy on tougher economic sanctions, possibly including an oil embargo, a global ban on its airline, intercepting cargo ships and punishing Chinese banks doing business with Pyongyang.

Tensions have risen as Trump takes a hard rhetorical line with Kim Jong Un, who has rebuffed admonitions from China and proceeded with nuclear and missile programmes seen by Washington as a direct threat.

China says the crisis is between the United States and North Korea. Lu said China efforts to help achieve denuclearization were clear, adding: “China is not the initiator of the Korean peninsula nuclear issue.”

China banned imports of North Korean coal on Feb. 26, cutting off its most important export and Chinese media has raised the possibility of restricting oil shipments to the North if it unleashed more provocations.

Pyongyang has conducted several missile and nuclear tests in defiance of U.N. sanctions, and has said it has developed and would launch a missile that can strike the U.S. mainland.

U.S. officials and experts believe it is some time away from mastering the necessary technology, including miniaturising a nuclear warhead.

(Additional reporting by Jack Kim and James Pearson in SEOUL, Daniel Trotta in NEW YORK, Lucia Mutikani and Caren Bohan in WASHINGTON and Michael Martina in BEIJING:; Writing by Nick Macfie; Editing by Paul Tait and Robert Birsel)

Between reckless ally and old rival, China in a bind over North Korea

A general view shows the unfinished New Yalu River bridge that was designed to connect China's Dandong New Zone, Liaoning province, and North Korea's Sinuiju.

By Benjamin Kang Lim and Michelle Nichols

BEIJING/UNITED NATIONS (Reuters) – China is in a bind over what to do about North Korea’s stepped-up nuclear and missile tests, even though it is annoyed with its ally and has started talks with other U.N. Security Council members on a new sanctions resolution against Pyongyang.

China shares a long land border with North Korea and is seen as the only country with real power to bring about change in the isolated and belligerent nation. However, Beijing fears strengthening sanctions could lead to collapse in North Korea, and it also believes the United States and its ally South Korea share responsibility for growing tensions in the region.

China is in a difficult spot, a source close to the Chinese leadership told Reuters when asked if Beijing’s attitude to North Korea had changed after its fifth nuclear test last week.

“On the one hand, China is resolutely opposed to North Korea developing nuclear weapons for fear of triggering a nuclear arms race in the region,” the source said, referring to Japan and South Korea following in Pyongyang’s footsteps.

“On the other hand, North Korea is a big headache but regime change is not an option,” the source added. “Collapse of the regime would lead to chaos in (China’s) northeast” bordering North Korea, the source said, requesting anonymity.

The prospect of a unified Korea under Seoul’s leadership and the possibility of U.S. troops on China’s borders has long been a nightmare for Beijing.

A collapse in North Korea, sending a flood of refugees across the relatively porous border into China’s rustbelt northeastern provinces, would also be deeply destabilizing to Beijing’s rule as well as a huge economic cost.

Those concerns have been around for years, but now Beijing is also deeply angered by a U.S. decision to deploy an advanced anti-missile system in South Korea, the Terminal High Altitude Area Defense (THAAD) system. It has said its own security has been compromised and that North Korea’s recent belligerence is due to this deployment.

Publicly, China has not linked the THAAD deployment with whether it will support sanctions on North Korea. It condemned the latest missile and nuclear tests but said sanctions alone could not resolve the issue and has called for a resumption of talks with Pyongyang.

Beijing has also said it will work within the United Nations to formulate a necessary response to its fifth nuclear test.

“We’re in negotiations on a U.N. Security Council resolution,” Samantha Power, the U.S. ambassador to the United Nations, said on Thursday.

Diplomats said the talks were at an early stage and negotiations were likely to be long and tough.

IRRITATION AND CONSENSUS

One senior U.N. diplomat said Beijing made displeasure with Pyongyang clear at an earlier Security Council meeting called after North Korea tested three medium range missiles at an embarrassing time – when U.S. President Barack Obama and other world leaders were gathered for the G20 summit in the eastern Chinese city of Hangzhou this month.

“The tone of the whole discussion was much more consensual, it didn’t feel like there was two camps fighting arguing with each other,” said the diplomat. “Of course there continue to be different views about sanctions.”

The United States has called on Beijing to use its influence to get North Korea to give up its nuclear ambitions, and to close sanctions “loopholes”, since the existing ones had done little to prevent Pyongyang from pursuing its nuclear and missile programs.

Shen Wenhui, a researcher at the Chinese Academy of Social Sciences, told influential state-run newspaper the Global Times last week that crippling sanctions would cause a “humanitarian disaster” in North Korea.

“In putting sanctions on North Korea, the international community must reduce the effect on ordinary people to the greatest possible extent,” Shen wrote.

China’s concerns also include the larger issue of what Beijing sees as Washington’s attempts to surround it under Obama’s strategic “rebalance” towards Asia. Besides THAAD, the dispute in the South China Sea, cybersecurity and human rights have marred ties between the world’s two biggest economies.

Chinese officials also say that the West over-estimates its influence with North Korea.

“I think any idea to ask North Korea to abandon nuclear weapons would fail, and any idea to ask South Korea to abandon THAAD would fail,” said Shen Dingli, a professor at Shanghai’s elite Fudan University and director of the school’s Program on Arms Control and Regional Security.

North Korea is useful for China, Shen added. “China needs North Korea to counter the United States.”

In Seoul, some are already accepting that China will not do much more to punish North Korea.

“The sanctions that North Korea will not be able to endure will be all blocked by China even without being asked by the North,” Chun Yung-woo, a former South Korean national security adviser, told Reuters. “So the North is hiding behind that and comfortably pursuing the nuclear programmer’s.”

(Additional reporting by Michael Martina in Beijing, James Pearson, Jack Kim and Ju-min Park in Seoul and David Brunnstrom in Washington; Writing by Ben Blanchard; Editing by Raju Gopalakrishnan)

North Korea may have resumed tunneling at nuclear test site

North Korean leader Kim Jong Un salutes as he arrives to inspect a military drill at an unknown location, in this undated photo released by North Korea's Korean Central News Agency (KCNA)

WASHINGTON (Reuters) – Satellite images show that North Korea may have resumed tunnel excavation at its main nuclear test site, similar to activity seen before the country’s most recent nuclear test in January, a U.S. North Korea monitoring website reported on Wednesday.

The 38 North website, run by the Johns Hopkins University’s School of Advanced International Studies, said such activity could be carried out as part of preparations for a nuclear test, as was the case in January, or to conceal such preparations.

It said commercial satellite images of the West Portal of the Punggye-ri test site taken on Tuesday showed two small ore carts on a track crossing a road from a tunnel entrance.

“The presence of the two carts … and the absence of any notable changes in the spoil pile suggests that tunnel excavation operations are about to resume, or have recently resumed, for the first time this year,” the 38 North report said.

The report said the images also showed limited movement of vehicles and equipment at the site’s North Portal, where the past three North Korean nuclear tests took place, compared to images taken on April 14.

“These activities by themselves do not establish that test preparations are imminent. However, the possibility of an impending test cannot be ruled out,” the report said.

“Pyongyang has clearly demonstrated, with its fourth nuclear detonation this past January, the ability to conduct detonations on short notice while masking indicators of its preparations from satellite view.”

A South Korean official declined to comment on any new intelligence reports of activities at the site but said the military was on high alert over the possibility that the North could conduct a nuclear test at any time.

North Korean leader Kim Jong Un said in March that his country has miniaturized a nuclear warhead and ordered tests of a nuclear warhead and ballistic missiles in defiance of U.N. sanctions.

38 North reported in early December that satellite photographs from the two previous months indicated North Korea was digging a new tunnel for nuclear testing.

North Korea conducted its fourth nuclear test on Jan. 6 and has vowed to conduct more, despite the stepped up international sanctions.

Some experts expect North Korea to conduct a fifth nuclear test before a ruling party congress in early May, following an embarrassing failure in the test of an intermediate-range missile last week.

The top U.S. diplomat for the Asia-Pacific region warned on Tuesday that a fifth North Korean nuclear test could trigger new sanctions including an effort to choke off hard currency earnings by its workers abroad.

(Reporting by David Brunnstrom; additional reporting by Jack Kim in Seoul; Editing by Tom Brown and Raju Gopalakrishnan)