Treasury Department says two of the companies illicitly ship cigarettes, a trade generating more than $1 billion annually.
The Treasury Department’s Office of Foreign Assets Control (OFAC) has added one individual and three companies to its growing list of shipping sanctions against North Korea.
As a result of this action, U.S. persons are prohibited from conducting business with the individual and companies.
“Treasury will continue to implement existing sanctions on North Korea and will take action to block and designate companies, ports and vessels that facilitate illicit shipments and provide revenue streams” to North Korea, said Treasury Secretary Steven Mnuchin in a statement.
“The tactics that these entities based in China, Singapore and Russia are using to attempt to evade sanctions are prohibited under U.S. law, and all facets of the shipping industry have a responsibility to abide by them or expose themselves to serious risks,” he added.
OFAC designated China-based Dalian Sun Moon Star International Logistics Trading Co. Ltd. and its Singapore-based affiliate, SINSMS Pte. Ltd. These companies have been engaged in illicitly shipping alcohol, tobacco and cigarettes to North Korea. According to the agency, the illicit cigarette trade in North Korea has generated more than $1 billion annually for the regime.
In addition, the agency designated Russia-based Profinet Pte Ltd. and Vasili Aleksandrovich Kolchanov, the company’s director general. Profinet is a Russian port service agency that provides loading, bunkering, supplying and departure arrangements for vessels calling at the Russian ports of Nakhodka, Vostochny, Vladivostok and Slavyanka. According to OFAC, the company has provided port services on at least six occasions to North Korean-flagged vessels, including the sanctioned vessels Chon Myong 1 and Rye Song Gang 1, which have transported “thousands of metric tons” of refined oil products.
Since the start of this year, Treasury has expanded its list of sanctions against individuals and companies engaged in maritime shipping with North Korea.
More North Korean shipping sanctions
