U.S. says Russian Federation hid North Korea sanctions breaches, slaps new sanctions

Treasury targets North Korean-run IT companies with financial sanctions | TheHill

US Imposes Sanctions on N. Korean IT Firms

Kim at the summit pledged to work toward denuclearization, although USA and other officials have said the North has made little progress to the stated goal.

The dispute between Russian Federation and the United States as well as Western and other Security Council members has delayed the official release of the six-month report by the expert panel monitoring sanctions against North Korea. The companies and their executives are accused of violating sanctions banning the exportation of North Korean workers and operating information technology services in North Korea.

China Silver Star, also known as Yanbian Silverstar Network Technology Co., is associated with the Munitions Industry Department of North Korea's ruling party, which oversees the nation's ballistic missile programs, and with a state corporation that obtains commodities and technology to support North Korean defence research and procurement.

Defense officials say North Korea is regularly employing "deceptive tactics to evade United Nations sanctions" with ship-to-ship transfers, and while the U.S. and allies have been working quietly to thwart that smuggling, the effort will now become more public in an effort to "name and shame" Pyongyang and its enablers.

Haley and other diplomats claim that Russian Federation pressured the independent monitors to amend the report.

By blocking since early August release of the original document, Russia explained that the report relied mainly on American information and did not take into account a Russian analysis of the application of sanctions.

"This is a risky precedent and a stain on the important work of the panel", Haley said, calling for the initial version of the report - dating from early August - to be published.

Sister technology firms, Jilin-based China Silver Star and Vladivostok-based Volasys Silver Star, were Chinese and Russian in name only and acted as front companies for North Koreans, the US Treasury Department alleged in a press release on Thursday.

The news came as the USA sanctioned a Chinese technology firm and its Russian sister company, saying they are both controlled by North Koreans and provide revenue to Pyongyang.

The Russian news agency TASS quoted Russia's U.N. Mission as saying the proposed sanctions were "unjustified".

Although virtually all North Koreans lack access to the internet, the USA says that IT is not only a source of revenue for its authoritarian government but used by the North for theft and intimidation.

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