US SANCTIONS ON RUSSIAN AND CHINESE COMPANIES




İrem Uzun -DG- United States Department of the Treasury has announced that the sanctions will be imposed on 10 companies and 6 individuals from Russia and China, which it accuses of conducting business with North Korea and supporting it in nuclear weapons program. “It is unacceptable for individuals and companies in China, Russia and elsewhere to enable North Korea to generate income used to develop weapons of mass destruction and destabilize the region,” Treasury Secretary Steven Mnuchin said.

The Trump administration has been trying to persuade North Korea to negotiate and cease its nuclear weapons development. It is the fifth and the largest set of US sanctions that was related to North Korea. Sanctions are planned in order to impede the economic ties of North Korea with other countries. By this way, America aims to prevent Pyongyang from developing its missiles and nuclear program. The fourth sanction was implemented last month at the UN Security Council. In return, Ri Long Ho, Foreign Minister of DPRK gave a promise of retaliation “a thousand times over” and emphasised that North Korea will never abandon its ballistic missiles and nuclear programs.

Even though US is the only country that adopts sanctions, it has a world-wide influence since the US dollar has a major contribution on international banking and global economy. Not only US citizens and companies, but also many banks outside the US were discouraged from doing business with sanctioned companies.

The sanctions were considered as a message to warn Moscow and Beijing not to do business with North Korea. Russian Deputy Foreign Minister Sergei Ryabkov called the new US sanctions as the latest example of the US damaging its relationship with Russia, and he promised that Russia was “beginning to work out a response”, which is inevitable.

China has also given a harsh response against US sanctions. “China opposes unilateral sanctions out of the U.N. Security Council framework, especially the ‘long-arm jurisdiction’ over Chinese entities and individuals exercised by any country in accordance with its domestic laws,” the Chinese Embassy in Washington said. It also said that China appropriately implement the sanctions of US Security Council on North Korea, therefore suspected companies and individuals will be investigated and punished according to China’s domestic laws.