“This is the strongest set of sanctions that the Security Council has imposed”.
The measures were approved unanimously Monday. They have proposed a freeze-for-freeze that would halt North Korean nuclear and missile tests in exchange for the US and South Korea stopping their joint military exercises – but the Trump administration has rejected that.
That could be a significant restriction.
While preventing the DPRK from importing all natural gas liquids and condensates, according to some observers the United Nations resolution simply capped crude oil imports at the same level at which they had been over the previous 12 months, while limiting imports of refined petroleum products to 2m barrels per year. So the 2 million barrel cap could be cutting existing imports 10 percent, or slashing them by more than half.
“Saudi Arabia’s case”, said Hagerty, “won’t be driven by what happens with North Korea”.
“We think it’s just another very small step, not a big deal”.
The uptick in traffic between the two countries also coincided with previous United Nations sanctions that banned fuel shipments from a state-owned company from China.
If the idea is to ratchet up the pressure incrementally until the point where Mr Kim decides to unilaterally disband his nuclear and missile programmes and call for talks, we could be in for a very long wait, during which time his scientists will be pressing ahead with all urgency to flawless their nuclear capable ICBMs.
Wages at textiles factories grew tenfold around 2010 when North Korea was experimenting with economic reforms, according to Green, so people suddenly went from earning 30 North Korean won to 300 won.
“Given this situation, we need to watch further (to gauge North Korea’s intention)”. “For example, the buttons may come from Italy, the cotton may come from Australia or India, the labour may come from North Korea or China, the accessories may come from Bangladesh”.
“Further, today’s resolution completely bans natural gas and other oil byproducts that could be used as substitutes for the reduced petroleum”.
Rajiv Biswas, Asia Pacific chief economist for IHS Markit, also said he expects that Pyongyang can weather the import reduction.
The measures contained in the resolution are estimated to diminish North Korea’s export earnings by as much as Dollars $1.3 billion.
What will North Korea do?
One metric ton is roughly equal to roughly seven barrels of crude oil.
Asked if Trump was considering other actions, including cutting off Chinese banks from the US financial system, White House spokeswoman Sarah Sanders said: “All options are on the table”.
Following the vote, U.S. Ambassador to the United Nations Nikki Haley portrayed North Korea as increasingly isolated.
South Korea is assembling a “decapitation unit” in its military in a thinly veiled threat to North Korean leader Kim Jung Un and his top aides as they escalate a nuclear missile program, The New York Times reported.
Joseph DeThomas, a former State Department official who worked on Iran and North Korea sanctions, questioned whether the new steps would have a major impact, saying the labour ban would be nearly impossible to police and that trade statistics greatly overstated North Korea’s earnings from textiles.
The original USA draft would have ordered all countries to impose an asset freeze and travel ban on Kim Jong Un and four other top party and government officials.
“It does sound like USA patience is running out”, Ruggiero said.
Why were Russian Federation and China against stronger sanctions?
The world-and the stock market-reacted to North Korea’s new threat against USA should the latter push through with its threats and compel the United States to issue even harsher economic sanctions against them.
Both Beijing and Moscow had strong words for Washington.
“Chinese banks restricting financial flows between (China and) North Korea is actually restricting trade on the whole”, Zhang said.
“It is very helpful”, he said.