North Korea’s Oil Smuggling Operations
Despite UN resolutions and a global pandemic, North Korea continued to acquire new oil tankers in 2020, expanding its illegal oil smuggling capacity. The country added two new vessels to its fleet, bringing the total number of new acquisitions since 2019 to three. Two of these vessels were previously owned by South Korean companies, while the third was transferred from Pyongyang’s established sanctions evasion networks.
UN Sanctions and Evasion Tactics
The UN Security Council prohibited member states from supplying, selling, or transferring any new or used vessels to North Korea in 2017, aiming to hinder the country’s illicit programs and prevent the expansion of illegal trade volumes via maritime routes. However, North Korea has found ways to circumvent these measures, demonstrating its ability to acquire new tankers despite sanctions.
Recent Vessel Acquisitions
The Sin Phyong 5, a vessel listed on the International Maritime Organization (IMO) registry as recently as October 2020, is now owned by Pyongyang-based Korea Myongryu Trading. This company also owns the Myong Ru 1, which has been involved in oil smuggling activities noted by the US Treasury Department’s Office of Foreign Assets Control (OFAC) and the UN Panel of Experts. The Sin Phyong 5’s last transmission was on July 27, 2019, when it sailed from South Korea to China’s Wangja Bay.
The vessel’s new owner, Young Sung Global, a South Korean company based in Busan, transferred the Sin Phyong 5 to North Korea. This is not an isolated incident; another tanker, the Kwang Chon 2, was also acquired by Pyongyang and observed delivering oil to North Korea’s Nampho port on 10 different occasions before officially joining the DPRK’s tanker fleet in November 2019.
Impact on Global Energy Markets
North Korea’s maritime fleets have long been a key component of its sanctions evasion methods. The country has developed a network of trusted third-party evaders working in foreign countries, allowing it to continue acquiring new tankers and expanding its illegal oil smuggling capacity. The recent additions to North Korea’s oil smuggling fleet highlight the country’s ability to evade UN restrictions on oil imports.
The industry impact of these sanctions breaches is significant. The lack of transparency and accountability in North Korea’s maritime activities poses risks to global energy markets, as well as to the safety and security of vessels and crew involved in illegal activities. Furthermore, the proliferation of illegal oil smuggling operations undermines international efforts to combat climate change and promotes a culture of impunity.
Conclusion
In conclusion, North Korea’s continued acquisition of new oil tankers despite UN sanctions highlights the country’s determination to maintain its illegal oil smuggling capacity. The recent additions to Pyongyang’s fleet demonstrate the effectiveness of its sanctions evasion networks, which continue to pose significant challenges to international efforts to combat illicit activities and promote global security.
Original Article: North Korea still obtaining new oil tankers, despite sanctions — Csis