Report: Russia Set Up Clandestine Network For N. Korea Oil Shipments

Russia engaged in more extensive oil exports to North Korea than had been previously reported, by setting up an illicit trade network that is likely still being used today to evade United Nations sanctions, according a South Korean research organization.

A recent report issued by the Asan Institute for Policy Studies in Seoul used Russian customs data to document how “one North Korean state enterprise purchased 622,878 tons of Russian oil worth $238 million,” between 2015 and 2017.”

While China is North Korea’s main oil supplier, the ASAN estimate for Russian oil exports to North Korea is significantly higher than the $25 million in sales for the same period that was reported by the Korea International Trade Association (KITA) in Seoul.

“Smuggling has always been an important element in the cross-border trade between North Korea and it’s important allies. What the Chinese government and the Russian government to a lesser extent have been doing is to turn a blind eye to these activities,” said Go Myong-Hyun, a North Korea analyst with the Asan Institute For Policy Studies in Seoul.

Russian evasions

The Asan report comes amid allegations that Russia potentially violated international sanctions imposed on North Korea by granting thousands of new work permits to North Korean laborers. Moscow had denied any such actions.

The Trump administration also imposed targeted U.S sanctions on a Russian bank for allegedly doing business with a person blacklisted for involvement with North Korea’s nuclear weapons program.

On Friday U.S. Ambassador to the United Nations Nikki Haley called the allegations against Russia, “very troubling.” U.S. Secretary of State Mike Pompeo called on “the Russians and all countries to abide by the U.N. Security Council resolutions and enforce sanctions on North Korea,” while attending the ASEAN Regional Forum in Singapore on Saturday.

United Nations sanctions imposed in September of 2017 prohibit member countries from “providing work authorizations” permits to North Korean workers.

In December of 2017 the U.N. Security Council further strengthened the sanctions to cut North Korean oil imports by a third, and to impose a total export ban on North Korea’s $3 billion coal and other mineral industries, its $800 million clothing manufacturing output, and its lucrative seafood industry.

Shell companies

The ASAN report is centered on the activities of the Independent Petroleum Company (IPC), a Russian firm that the U.S. Treasury Department targeted in June 2017 for violating restrictions on selling oil to North Korea. IPC has since changed its name. 

IPC was found to have sold large quantities of oil to Russian affiliated companies, such as the Pro-Gain Group Corporation (PGGC) that was actually operating on behalf of North Korea’s state owned Foreign Trade Bank. The North Korean bank has been under U.S. sanctions since 2013.

“The entities involved tried to cover up the transactions by falsifying destination countries for the purchases,” said the ASAN report entitled The Rise of Phantom Traders.

The report notes that PGGC is owned by Taiwan citizen Tsang Yung Yuan. Tsang was sanctioned earlier this year by the U.S. for facilitating North Korean coal exports using a Russia-based North Korean broker. PGGC has headquarters listed both in Taipei and Samoa.

North Korea has also been accused of conducting illicit ship-to-ship transfers of oil, and to conceal these operations by disabling the Automatic Identification System (AIS) transponder of vessels in order to hide their location. There have also been reports of North Korea changing vessel names and identification numbers, even painting over or altering the numbers on the ships’ exteriors.

Rajin-Khasan Exemption

A large number of oil shipments were also delivered to the Russian-North Korean border village of Khasan, which is connected by rail to the North Korean port terminal at Rajin.

The Rajin-Khasan rail project was exempted from U.N. sanctions to allow Russia to use the North Korean seaport to export Russian coal.

Trade records show that oil deliveries arriving in Khasan were on their way to China, but the report suggests it is more likely North Korea was the final destination. Since 2015, the ASAN report says, only PGGC and Velmur, two companies with ties to North Korea, listed Khasan as the point of delivery for oil shipments. 

According to the ASAN report, Moscow and Pyongyang are likely exploiting the Rajin-Khasan rail exemption to evade restrictions on North Korean oil imports.

In 2016, South Korea suspended its participation in the Rajin-Khasan rail project to comply with U.S. unilateral sanctions imposed on North Korea trade.

Recently some officials in Seoul have called for these sanctions affecting the Rajin-Khasan Project to be lifted, so that investment can proceed in connecting South Korean rail both to North Korea, and to the intentional railway system beyond that can reach Europe.

Sanctions effectiveness

The sanctions are intended to cut North Korea off from foreign currency and materials needed for weapons production, and to impose economic pain on the leadership to persuade Pyongyang to give up its nuclear and ballistic missile development programs.

Despite increased reports of sanctions evasions, Cheong Seong-chang, a North Korea analyst with the Sejong Institute in South Korea, says the recent report of an 88 percent decline in North Korean trade in the first quarter of this year indicates the economic situation there is in dire condition.

“If the sanctions from the U.N. Security Council continue, economic breakdown in North Korea will be inevitable,” said Cheong.

Talks between Washington and Pyongyang have made little significant progress toward ending the North’s nuclear program since June, when North Korean leader Kim Jong Un reaffirmed his commitment to denuclearization during his meeting with U.S. President Donald Trump in Singapore.

The U.S. insists that the North completely end it nuclear weapons program before any concessions are granted, while Pyongyang wants early sanctions relief.

On Sunday Pompeo said that North Korean Foreign Minster Ri Yong Ho reiterated a “very clear” commitment to denuclearize when the two met at the ASEAN conference in Singapore.

Lee Yoon-jee contributed to this report.

From: MeNeedIt

Report: Russia Set Up Clandestine Network For N. Korea Oil Shipments

Russia engaged in more extensive oil exports to North Korea than had been previously reported, by setting up an illicit trade network that is likely still being used today to evade United Nations sanctions, according a South Korean research organization.

A recent report issued by the Asan Institute for Policy Studies in Seoul used Russian customs data to document how “one North Korean state enterprise purchased 622,878 tons of Russian oil worth $238 million,” between 2015 and 2017.”

While China is North Korea’s main oil supplier, the ASAN estimate for Russian oil exports to North Korea is significantly higher than the $25 million in sales for the same period that was reported by the Korea International Trade Association (KITA) in Seoul.

“Smuggling has always been an important element in the cross-border trade between North Korea and it’s important allies. What the Chinese government and the Russian government to a lesser extent have been doing is to turn a blind eye to these activities,” said Go Myong-Hyun, a North Korea analyst with the Asan Institute For Policy Studies in Seoul.

Russian evasions

The Asan report comes amid allegations that Russia potentially violated international sanctions imposed on North Korea by granting thousands of new work permits to North Korean laborers. Moscow had denied any such actions.

The Trump administration also imposed targeted U.S sanctions on a Russian bank for allegedly doing business with a person blacklisted for involvement with North Korea’s nuclear weapons program.

On Friday U.S. Ambassador to the United Nations Nikki Haley called the allegations against Russia, “very troubling.” U.S. Secretary of State Mike Pompeo called on “the Russians and all countries to abide by the U.N. Security Council resolutions and enforce sanctions on North Korea,” while attending the ASEAN Regional Forum in Singapore on Saturday.

United Nations sanctions imposed in September of 2017 prohibit member countries from “providing work authorizations” permits to North Korean workers.

In December of 2017 the U.N. Security Council further strengthened the sanctions to cut North Korean oil imports by a third, and to impose a total export ban on North Korea’s $3 billion coal and other mineral industries, its $800 million clothing manufacturing output, and its lucrative seafood industry.

Shell companies

The ASAN report is centered on the activities of the Independent Petroleum Company (IPC), a Russian firm that the U.S. Treasury Department targeted in June 2017 for violating restrictions on selling oil to North Korea. IPC has since changed its name. 

IPC was found to have sold large quantities of oil to Russian affiliated companies, such as the Pro-Gain Group Corporation (PGGC) that was actually operating on behalf of North Korea’s state owned Foreign Trade Bank. The North Korean bank has been under U.S. sanctions since 2013.

“The entities involved tried to cover up the transactions by falsifying destination countries for the purchases,” said the ASAN report entitled The Rise of Phantom Traders.

The report notes that PGGC is owned by Taiwan citizen Tsang Yung Yuan. Tsang was sanctioned earlier this year by the U.S. for facilitating North Korean coal exports using a Russia-based North Korean broker. PGGC has headquarters listed both in Taipei and Samoa.

North Korea has also been accused of conducting illicit ship-to-ship transfers of oil, and to conceal these operations by disabling the Automatic Identification System (AIS) transponder of vessels in order to hide their location. There have also been reports of North Korea changing vessel names and identification numbers, even painting over or altering the numbers on the ships’ exteriors.

Rajin-Khasan Exemption

A large number of oil shipments were also delivered to the Russian-North Korean border village of Khasan, which is connected by rail to the North Korean port terminal at Rajin.

The Rajin-Khasan rail project was exempted from U.N. sanctions to allow Russia to use the North Korean seaport to export Russian coal.

Trade records show that oil deliveries arriving in Khasan were on their way to China, but the report suggests it is more likely North Korea was the final destination. Since 2015, the ASAN report says, only PGGC and Velmur, two companies with ties to North Korea, listed Khasan as the point of delivery for oil shipments. 

According to the ASAN report, Moscow and Pyongyang are likely exploiting the Rajin-Khasan rail exemption to evade restrictions on North Korean oil imports.

In 2016, South Korea suspended its participation in the Rajin-Khasan rail project to comply with U.S. unilateral sanctions imposed on North Korea trade.

Recently some officials in Seoul have called for these sanctions affecting the Rajin-Khasan Project to be lifted, so that investment can proceed in connecting South Korean rail both to North Korea, and to the intentional railway system beyond that can reach Europe.

Sanctions effectiveness

The sanctions are intended to cut North Korea off from foreign currency and materials needed for weapons production, and to impose economic pain on the leadership to persuade Pyongyang to give up its nuclear and ballistic missile development programs.

Despite increased reports of sanctions evasions, Cheong Seong-chang, a North Korea analyst with the Sejong Institute in South Korea, says the recent report of an 88 percent decline in North Korean trade in the first quarter of this year indicates the economic situation there is in dire condition.

“If the sanctions from the U.N. Security Council continue, economic breakdown in North Korea will be inevitable,” said Cheong.

Talks between Washington and Pyongyang have made little significant progress toward ending the North’s nuclear program since June, when North Korean leader Kim Jong Un reaffirmed his commitment to denuclearization during his meeting with U.S. President Donald Trump in Singapore.

The U.S. insists that the North completely end it nuclear weapons program before any concessions are granted, while Pyongyang wants early sanctions relief.

On Sunday Pompeo said that North Korean Foreign Minster Ri Yong Ho reiterated a “very clear” commitment to denuclearize when the two met at the ASEAN conference in Singapore.

Lee Yoon-jee contributed to this report.

From: MeNeedIt

Apple iPhone Chip Supplier Says Virus Will Delay Shipments

A company that makes semiconductors for Apple iPhones says it is recovering from a virus outbreak but expects the incident to delay shipments and raise costs.

Taiwan Semiconductor Co. Ltd. said 80 percent of the fabrication tools affected by Friday’s virus had been recovered by Sunday. TSMC expects full recovery on Monday.

The company didn’t detail the impact on Apple or other customers. Apple Inc. did not immediately return a message seeking comment.

The semiconductor company blames the outbreak on a mistake during installation of software for a new tool, which was then connected to its computer network. It says confidential information was not compromised.

The company says the incident will cut third-quarter revenue by about 3 percent. But it’s confident it will get that back in the fourth quarter.

 

From: MeNeedIt

New Era in Space: NASA Astronauts Fly Commercial Spacecraft

A new era in American spaceflight was unveiled Friday, with NASA presenting the flight crews that will carry out the first test flights and operational missions aboard commercial spacecraft to be launched from U.S. soil for the first time since the space shuttle’s retirement in 2011. VOA Correspondent Mariama Diallo reports.

From: MeNeedIt

New Era in Space: NASA Astronauts Fly Commercial Spacecraft

A new era in American spaceflight was unveiled Friday, with NASA presenting the flight crews that will carry out the first test flights and operational missions aboard commercial spacecraft to be launched from U.S. soil for the first time since the space shuttle’s retirement in 2011. VOA Correspondent Mariama Diallo reports.

From: MeNeedIt

New Era in Space: NASA Astronauts Fly Commercial Spacecraft

A new era in American spaceflight was unveiled Friday, with NASA presenting the flight crews that will carry out the first test flights and operational missions aboard commercial spacecraft to be launched from U.S. soil for the first time since the space shuttle’s retirement in 2011. VOA Correspondent Mariama Diallo reports.

From: MeNeedIt

New Era in Space: NASA Astronauts Fly Commercial Spacecraft

A new era in American spaceflight was unveiled Friday, with NASA presenting the flight crews that will carry out the first test flights and operational missions aboard commercial spacecraft to be launched from U.S. soil for the first time since the space shuttle’s retirement in 2011. VOA Correspondent Mariama Diallo reports.

From: MeNeedIt

Palestinian Girls Will Pitch Their App to Silicon Valley 

Four Palestinian high school friends are heading to California this week to pitch their mobile app about fire prevention to Silicon Valley’s tech leaders, after winning a slot in the finals of a worldwide competition among more than 19,000 teenage girls.

For the 11th graders from the Israeli-occupied West Bank, the ticket of admission to the World Pitch Summit signals a particularly dramatic leap.

They come from middle class families that value education, but opportunities have been limited because of the omnipresent Israeli-Palestinian conflict, prevailing norms of patriarchy in their traditional society and typically underequipped schools with outdated teaching methods.

“We are excited to travel in a plane for the first time in our lives, meet new people and see a new world,” said team member Wasan al-Sayed, 17. “We are excited to be in the most prestigious IT community in the world, Silicon Valley, where we can meet interesting people and see how the new world works.”

​Twelve finalists

Twelve teams made it to the finals of the “Technovation Challenge” in San Jose, California, presenting apps that tackle problems in their communities. The Palestinian teens compete in the senior division against teams from Egypt, the United States, Mexico, India and Spain, for scholarships of up to $15,000.

It’s a life-changing experience for al-Sayed and her teammates, Zubaida al-Sadder, Masa Halawa and Tamara Awaisa.

They are now determined to pursue careers in technology.

“Before this program, we had a vague idea about the future,” said al-Sayed, speaking at a computer lab at An Najah University in her native Nablus, the West Bank’s second largest city. “Now we have a clear idea. It helped us pick our path in life.”

The teens first heard about the competition a few months ago from an IT teacher at their school in a middle-class neighborhood in Nablus, where IT classes are a modest affair, held twice a week, with two students to a computer.

The girls, friends since 10th grade, each had a laptop at home, and worked with Yamama Shakaa, a local mentor provided by the competition organizers. The teens “did everything by themselves, with very few resources,” Shakaa said.

The team produced a virtual reality game, “Be a firefighter,” to teach fire prevention skills.

​Blackouts and fires

The subject is particularly relevant in some parts of the Palestinian territories, such as the Gaza Strip, where a border blockade by Israel and Egypt, imposed after the takeover of the Islamic militant group Hamas in 2007, has led to hours-long daily power cuts and the widespread use of candles and other potential fire hazards.

The teens now hope to expand their app to include wildfire prevention. They will also present a business and marketing plan at the California pitching session.

After the competition, they will give the app to the Palestinian Education Ministry for use in schools.

“This prize has changed our lives,” al-Sayed said.

About the competition

The competition, now in its ninth year, is run by Iridescent, a global nonprofit offering opportunities to young people, especially girls, through technology. The group said 60 percent of the U.S. participants enroll in additional computer science courses after the competition, with 30 percent majoring in that field in college, well above the national rate among female U.S. college students. Two-thirds of international participants show an interest in technology-related courses, the group said.

Palestinian Education Minister Sabri Saidam counts on technology, along with a new emphasis on vocational training, to overhaul Palestinian schools, where many students still learn by rote in crowded classrooms.

Youth unemployment, particularly among university graduates, is a central problem across the Arab world, in part because of a demographic “youth bulge.” Last year, unemployment among Palestinian college graduates younger than 30 reached 56 percent, including 41 percent in the West Bank and 73 percent in the Gaza Strip, according to the Palestinian Central Bureau of Statistics.

Unemployment is particularly high among female university graduates, in part because young women are expected to marry and raise children, while young men are considered the main breadwinners. However, employers also complain that graduates studying outdated or irrelevant courses often lack the needed skills for employment.

Saidam said Palestinian schools have received 15,000 computers in the last couple of years. His ministry has also established 54 bookless “smart schools” for grades one to six where students use laptops and learn by doing, including educational trips and involvement with their society.

From: MeNeedIt

Palestinian Girls Will Pitch Their App to Silicon Valley 

Four Palestinian high school friends are heading to California this week to pitch their mobile app about fire prevention to Silicon Valley’s tech leaders, after winning a slot in the finals of a worldwide competition among more than 19,000 teenage girls.

For the 11th graders from the Israeli-occupied West Bank, the ticket of admission to the World Pitch Summit signals a particularly dramatic leap.

They come from middle class families that value education, but opportunities have been limited because of the omnipresent Israeli-Palestinian conflict, prevailing norms of patriarchy in their traditional society and typically underequipped schools with outdated teaching methods.

“We are excited to travel in a plane for the first time in our lives, meet new people and see a new world,” said team member Wasan al-Sayed, 17. “We are excited to be in the most prestigious IT community in the world, Silicon Valley, where we can meet interesting people and see how the new world works.”

​Twelve finalists

Twelve teams made it to the finals of the “Technovation Challenge” in San Jose, California, presenting apps that tackle problems in their communities. The Palestinian teens compete in the senior division against teams from Egypt, the United States, Mexico, India and Spain, for scholarships of up to $15,000.

It’s a life-changing experience for al-Sayed and her teammates, Zubaida al-Sadder, Masa Halawa and Tamara Awaisa.

They are now determined to pursue careers in technology.

“Before this program, we had a vague idea about the future,” said al-Sayed, speaking at a computer lab at An Najah University in her native Nablus, the West Bank’s second largest city. “Now we have a clear idea. It helped us pick our path in life.”

The teens first heard about the competition a few months ago from an IT teacher at their school in a middle-class neighborhood in Nablus, where IT classes are a modest affair, held twice a week, with two students to a computer.

The girls, friends since 10th grade, each had a laptop at home, and worked with Yamama Shakaa, a local mentor provided by the competition organizers. The teens “did everything by themselves, with very few resources,” Shakaa said.

The team produced a virtual reality game, “Be a firefighter,” to teach fire prevention skills.

​Blackouts and fires

The subject is particularly relevant in some parts of the Palestinian territories, such as the Gaza Strip, where a border blockade by Israel and Egypt, imposed after the takeover of the Islamic militant group Hamas in 2007, has led to hours-long daily power cuts and the widespread use of candles and other potential fire hazards.

The teens now hope to expand their app to include wildfire prevention. They will also present a business and marketing plan at the California pitching session.

After the competition, they will give the app to the Palestinian Education Ministry for use in schools.

“This prize has changed our lives,” al-Sayed said.

About the competition

The competition, now in its ninth year, is run by Iridescent, a global nonprofit offering opportunities to young people, especially girls, through technology. The group said 60 percent of the U.S. participants enroll in additional computer science courses after the competition, with 30 percent majoring in that field in college, well above the national rate among female U.S. college students. Two-thirds of international participants show an interest in technology-related courses, the group said.

Palestinian Education Minister Sabri Saidam counts on technology, along with a new emphasis on vocational training, to overhaul Palestinian schools, where many students still learn by rote in crowded classrooms.

Youth unemployment, particularly among university graduates, is a central problem across the Arab world, in part because of a demographic “youth bulge.” Last year, unemployment among Palestinian college graduates younger than 30 reached 56 percent, including 41 percent in the West Bank and 73 percent in the Gaza Strip, according to the Palestinian Central Bureau of Statistics.

Unemployment is particularly high among female university graduates, in part because young women are expected to marry and raise children, while young men are considered the main breadwinners. However, employers also complain that graduates studying outdated or irrelevant courses often lack the needed skills for employment.

Saidam said Palestinian schools have received 15,000 computers in the last couple of years. His ministry has also established 54 bookless “smart schools” for grades one to six where students use laptops and learn by doing, including educational trips and involvement with their society.

From: MeNeedIt

Mural Artist Kelly Towles: Painting DC Happy

To many, Washington, is solely about politics, lobbying and all things administration. But to one man, the U.S. capital is a canvas that is just waiting to be filled with smiles and mysterious characters. Mural artist Kelly Towles has spilled some color on Washington’s manicured streets and turned a controversial occupation into a profitable business that leaves everyone happy. Anna Rice has the story.

From: MeNeedIt

Mural Artist Kelly Towles: Painting DC Happy

To many, Washington, is solely about politics, lobbying and all things administration. But to one man, the U.S. capital is a canvas that is just waiting to be filled with smiles and mysterious characters. Mural artist Kelly Towles has spilled some color on Washington’s manicured streets and turned a controversial occupation into a profitable business that leaves everyone happy. Anna Rice has the story.

From: MeNeedIt

Mural Artist Kelly Towles: Painting DC Happy

To many, Washington, is solely about politics, lobbying and all things administration. But to one man, the U.S. capital is a canvas that is just waiting to be filled with smiles and mysterious characters. Mural artist Kelly Towles has spilled some color on Washington’s manicured streets and turned a controversial occupation into a profitable business that leaves everyone happy. Anna Rice has the story.

From: MeNeedIt