Oil will keep flowing, but UN sanctions hit North Korea hard

Oil will keep flowing, but UN sanctions hit North Korea hard

The United Nations Security Council voted unanimously on Monday to impose a new set of sanctions against North Korea after the United States compromised with Russian Federation and China who opposed an even harder line sought by the Trump administration.

Japan and South Korea said after the passage of the US-drafted Security Council resolution they were prepared to apply more pressure if Pyongyang refused to end its aggressive development of nuclear weapons and ballistic missiles.

The Dandong-Sinuiju pipeline delivers more than half a million tonnes of crude oil to North Korea a year yet the supplies were explicitly excluded from the resolution passed by the UN Security Council on Monday in response to Pyongyang's sixth nuclear test.

The sanctions fell short of the original USA demand for banning foreign travel by North Korean leader Kim Jong-un and freezing his assets.

"Those sanctions are nothing compared to ultimately what will have to happen", Trump said, indicating he would continue to press Beijing. I don't know if it has any impact, but certainly it was nice to get 15-to-nothing vote. The new resolution bans exports of textiles from North Korea and imposes an embargo on gas condensate deliveries to the country.

Haley said the Trump administration believes the new sanctions combined with previous measures would ban over 90 percent of North Korea's exports reported in 2016.

The mouthpiece of the North's ruling party called for more "miracle-like events" such as the two ICBM tests to deter the United States which it said was bent on "decapitating" the nation's leader Kim Jong-Un.

A number of European Union countries including Britain are calling for the expulsion of North Korean workers posted in Europe, saying the revenue they generate is used to fund the nuclear programme. But the Security Council eased off the biggest target of all: the oil the North needs to stay alive, and to fuel its million-man military.

"China's policy is to force North Korea to the negotiating table, not to its knees, so it builds in exemptions like this to give it the ability to keep the regime alive", Hastings said.

Seoul's presidential office welcomed the new resolution, saying that its approval confirms that the worldwide community holds the shared belief that stronger measures are needed.

Washington so far has mostly held off on new sanctions against Chinese banks and other companies doing business with North Korea.

The watered-down resolution does not include sanctions the U.S. wanted on North Korea's national airline and the army.

Rajiv Biswas, Asia Pacific chief economist for IHS Markit, also said he expects that Pyongyang can weather the import reduction.

United Nations member-states are now required to halt imports of textiles from North Korea, its second largest export after coal and other minerals in 2016 that totalled $752 million and accounted for a quarter of its income from trade, according to South Korean data.

China's United Nations ambassador urged the council to adopt the freeze-for-freeze proposal and urged the U.S.to pledge not to seek regime change or North Korea's collapse.

Briefing the US lawmakers, Treasury Assistant Secretary for Terrorist Financing Marshall Billingslea displayed satellite photos to demonstrate North Korea's deceptive shipping practices.

Ahead of the U.N. vote, North Korea had warned that the United States would pay a "due price" if it pursues stronger sanctions.

"If we put firm pressure on North Korea such that it realizes it cannot develop missiles, it will accept dialogue and we can progress with diplomatic efforts", Onodera told public broadcaster NHK on Sunday.



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