More NK workers to China; NIS worried about increased cyber threats from DPRK; Tehran warns Western companies not to unload seized oil
Prohibited Transactions for the week of 17 July 2023 (#13)
North Korea
In violation of international sanctions, North Korea sent 350 new workers into the PRC in early July 2023, and they are now working in clothing and textiles factories in Liaoning province. //The workers took an indirect route into China, in a possible attempt to avoid international scrutiny.
The South Korean government estimates that the DPRK’s trade with the PRC was USD1.53 billion in 2022, up approximately 125 percent from 2021. The increase is due to lessening of COVID restrictions and increased rail trade between the two sides.
South Korea’s National Intelligence Service (NIS) estimates that the DPRK stole USD700 million worth of virtual currencies in 2022 — accounting for about 30 percent of North Korea’s total foreign currency earnings — though Pyongyang has not yet monetize the funds.
North Korean hackers breached a software company’s computer systems, as part of an attempted supply-chain attack targeting virtual currency companies.
The NIS is worried that cyber threats from the DPRK are on the rise, especially due to the return of Kim Yong-chol (discussed in Issue #11) to a position of power.
Seoul has been noncommittal about if they will share recovered DPRK satellite debris with UN sanctions investigators.
Iran
According to Iranian officials, Beijing and Tehran will begin executing some joint projects in August 2023. The Iranian Minister of Economy also noted that sanctions cannot seriously affect the development of economic and trade ties between the two countries. //All that is required is avoidance of the US dollar, and a willingness to possibly face secondary sanctions.
Russian and Iranian media are reporting that Iran and India plan to use the International North-South Transportation Corridor (INSTC) to test route a shipment of goods from Russia to India via the Chabahar port, sometime in the next six to eight months.
Separately, an Iranian official implied that the deal to buy Sukhoi Su-35 fighter jets from Russia has collapsed.
Fourteen Iraq-based banks have been banned by Washington from conducting US dollar transactions, in an attempt to crack down on the movement of US currency from Iraq to Iran.
The US issued a 120-day waiver allowing Baghdad to pay Tehran for electricity via non-Iraqi banks in third countries. //Though the money into non-Iraqi accounts will still be restricted to humanitarian goods and require US approval, this may take some pressure off of Baghdad, which is on the receiving end of complaints from Tehran about getting the funds released. Wondering which other countries will be willing to take on a portion of these Iranian funds.
Tehran warned they will retaliate against any Western companies involved in the unloading of 800,000 barrels of Iranian oil seized by the US government in April 2023 off of a Greek tanker, the Suez Rajan. //Though the Islamic Revolution Guards Corps (IRGC) did not specify the type of retaliation, it would likely involve the seizing or attempted seizures of tankers in the Gulf of Oman and Persian Gulf.
Iran is looking to attract tourists from nearby Arab states — as well as Russia and the PRC — to make up for a drop off of European tourists.