US imposes sanctions on Russia for financial cooperation with North Korea
Photo: The US imposes sanctions on Russia for financial cooperation with North Korea (Getty Images)
The United States has imposed sanctions against individuals and entities involved in illegal financial transactions between Russia and North Korea, according to the US Department of the Treasury.
As noted by the agency, the illegal financial network between Moscow and Pyongyang targeted by the new US sanctions is linked to two sanctioned North Korean state banks—the Foreign Trade Bank and the Kwangson Banking Corporation.
These institutions are used by North Korea to obtain foreign currency to finance state programs for the development of weapons of mass destruction and ballistic missiles.
The US has determined that for transactions with these banks, the Central Bank of Russia utilized MRB Bank, which operates in Russian-occupied South Ossetia.
MRB Bank was a front entity for the Russian TSMRBank. Its vice president, Dmitry Nikulin, organized the opening of correspondent accounts for North Korean banks at MRB Bank and coordinated the delivery of millions of dollars and rubles in cash to the respective accounts with North Korean representatives.
MRB Bank also used part of the North Korean accounts to pay for fuel exports from Russia to North Korea.
Additionally, the Russian Financial Corporation was involved in these financial schemes. Together with the Foreign Trade Bank of North Korea, they established a front company in Moscow through which Pyongyang received funds.
Furthermore, the Russian Timer Bank participated in this scheme, transferring millions of dollars to the Moscow company Stroytreyd LLC for the Foreign Trade Bank.
US sanctions against Russia
On August 23, the US expanded sanctions against Russia, targeting the defense and metallurgy sectors, as well as the supply of dual-use goods.
In the same month, the US Department of the Treasury and the State Department imposed a new sanctions package aimed at nearly 400 individuals and entities both in Russia and abroad, including in Asia and Europe. The restrictions pertain to Russian metal products.
The US also warned countries that trade with Russia about the risk of secondary sanctions if they allow Russian banks to open local branches to finance the supply of goods for the Russian defense industry.
