The US imposes sanctions on Russia for financial cooperation with the DPRK

The United States has imposed sanctions on individuals and legal entities involved in illegal financial transactions between Russia and the DPRK.

This was reported by RBC-Ukraine with reference to the press service of the US Treasury Department.

According to the department, the illegal financial network between Moscow and Pyongyang, which is targeted by new US sanctions, is connected to two sanctioned state-owned banks of the DPRK - the Foreign Trade Bank and the Kwangsong Banking Corporation of Korea.

It is through these institutions that the DPRK receives foreign currency to finance state programmes for the development of weapons of mass destruction and ballistic missiles.

As the United States found out, the Russian Central Bank used MRB Bank, located in Russian-occupied South Ossetia, to conduct transactions with these banks.

It was a front legal entity for the Russian CSMR Bank. Its vice president, Dmitry Nikulin, organised the opening of correspondent accounts for North Korean banks in MRB Bank and ‘coordinated with representatives of the DPRK to deliver millions of dollars and rubles in banknotes’ to the respective accounts.

MRB Bank used some of the North Korean accounts to pay for fuel exports from Russia to the DPRK.

The Russian Financial Corporation was also involved in the financial schemes. Together with the DPRK Foreign Trade Bank, they set up a shell company in Moscow through which Pyongyang received funds.

In addition, the Russian Timer Bank was also involved in this scheme, transferring millions of dollars to the Moscow-based Stroytreyd LLC for the Foreign Trade Bank.

Author - Dmitriy Levchenko, 20/09/2024