New sanctions has been slammed on North Korea, by The United Nations Security Council. UN Security Council on Monday unanimously imposed new sanctions on North Korea. This ban affects critical aspect of the Korean economy. The ban affects textile exports and restricting shipments of oil products to Korea.
This sanctions serves as punishment for North Korea’s continuous test of its nuclear weapon.
The resolution capped tough negotiations during which the United States dropped initial demands for a full oil embargo and a freeze on the foreign assets of North Korean leader Kim Jong-Un in a bid to win support from China and Russia.
The resolution bans textile exports, cuts off natural gas shipments to North Korea, places a ceiling on deliveries of refined oil products and caps crude oil shipments at their current level.
It bars countries from issuing new work permits to North Korean laborers sent abroad and seeks to phase out the practice by asking countries to report on the date for ending existing contracts.
Some 93,000 North Koreans work abroad, providing Kim’s regime with a source of revenue to develop its missile and nuclear programs, according to a US official familiar with the negotiations.
Under the measure, countries are authorized to inspect ships suspected of carrying banned North Korean cargo but must first seek the consent of the flag-state.
An initial draft authorized the use of force to board those vessels, but that was dropped in negotiations over the weekend.
The United States and its allies argue that tougher sanctions will pile pressure on Kim’s regime to come to the negotiation table to discuss an end to its nuclear and missile tests.
The resolution limits deliveries of refined oil products to 500,000 barrels for three months from October 1 and to two million barrels from January 1 for a period of 12 months.
That would amount to a 10 percent cut in oil products, according to the US Energy Information Administration (EIA), which estimates annual exports to North Korea at nearly 2.2 million barrels.
North Korea imports mostly gasoline and diesel fuel from China vital to the country’s agriculture, transportation and military sectors, according to the EIA.
China, North Korea’s sole ally and main trading partner, had strongly objected to an oil embargo initially sought by the United States out of fear that it would bring the North’s economy to its knees.
Some four million barrels per year of crude oil will continue to flow from China through a pipeline, but the resolution would cap those deliveries at the current level, according to the US official.
The US official said the ban on textile exports would deprive North Korea of some $726 million in annual revenue.
North Korea in response to the sanctions said it would not accept any chastisement over its nuclear and missile program, which it says is vital to stave off the threat of an American invasion.
If Washington does “rig up the illegal and unlawful ‘resolution’ on harsher sanctions, the DPRK shall make absolutely sure that the US pays due price,” its foreign ministry said, in a statement published by the official KCNA news agency.