U.S. hits Chinese and Russian firms over North Korea sanctions breach

Reuters  |  WASHINGTON 

(Reuters) - The imposed sanctions on a Russian port service agency and Chinese firms for aiding North Korean ships and selling alcohol and tobacco to in breach of U.S. sanctions.

The department also sanctioned Russian-based and its director general, Vasili Aleksandrovich Kolchanov, for providing on at least six occasions to North Korean-flagged ships.

Kolchanov was personally involved in North Korea-related deals and interacted directly with North Korean representatives in Russia, the department said.

"The tactics that these entities based in China, Singapore, and 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," said in the statement.

The sanctions mandate that no U.S. citizen can deal with any of those designated in the order, and any of their properties in the "must be blocked", the Treasury said.

The has been pressuring via sanctions to give up its nuclear weapons programme.

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China's Foreign Ministry said in a statement that has always strictly enforced Security Council resolutions on and did not allow Chinese firms or individuals to engage in activities that violated them.

"At the same time, China's position on opposing countries enacting unilateral sanctions on other countries and 'long-armed jurisdiction' is consistent and clear," it added, without elaborating.

When asked for comment, Liang Ye, a of Dalian Sun Moon Star International Logistics Trading, said the matter was still unclear and that the Chinese company had not received any notification.

China's official agency said the United States needed to back off pressuring North Korea if it was serious about wanting lasting peace on the

"should be reminded that the 'maximum pressure' approach on is not in keeping with the current situation on the and it needs to consider easing sanctions," Xinhua said in a commentary.

Such commentaries are not statements or official positions, but can be read as a reflection of government thinking.

Though has repeatedly said it enforces U.N. resolutions on North Korea, it has also said it has the right to conduct what it calls "normal trade" with the country in areas that fall outside the scope of the sanctions.

It has been angered in the past by unilateral U.S. sanctions on Chinese firms and individuals.

Russian said on Thursday that the United States had acted without evidence on the basis of groundless accusations when imposing sanctions on the Russian company.

was working on retaliatory measures, added Ryabkov, saying the Russian leadership would decide whether to hit back.

Vasili Kolchanov, the head of the agency affected, told he had worked with North Korean vessels as a transport agent, but said the sanctions against him and his firm were illegal.

He only helped prepare documents for the vessels, he said, and was not involved in trading anything.

"It's not our concern who fuels the vessels, who sells that fuel, who they buy the cargo and from," he said. "We do not load vessels. As an agent, I only need to check that they have permission from customs."

(Reporting by and Lesley Wroughton; Additional reporting by Liangping Gao, and in BEIJING, Polina Nikolskaya in MOSCOW; Editing by Catherine Evans)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, August 16 2018. 16:15 IST