US issues sanctions targeting North Korea-Russia arms trade

The Biden administration Wednesday sanctioned three businesses linked to a scheme to transfer weapons from North Korea to Russia for use in the latter country’s war in Ukraine.

The sanctions target three businesses linked to Slovakian national Ashot Mkrtychev, who the U.S. sanctioned in March for attempting to facilitate arms deals between Russia and the Democratic People’s Republic of Korea (DPRK), the formal name for North Korea. 

The Treasury Department alleges Mkrtychev worked with DPRK officials to try to obtain more than two dozen different kinds of weapons and munitions for Russia in exchange for a range of materials, from commercial aircraft to raw materials and commodities for North Korea. 

The Treasury Department said Mkrtychev also confirmed Russia’s readiness to receive military equipment from the DPRK with senior Russian officials. 

The sanctions announced Wednesday target businesses linked to Mkrtychev, called Limited Liability Company Verus; Defense Engineering Limited Liability Partnership (Defense Engineering); and Versor S.R.O. (Versor).  

The Treasury said in a statement that Mkrtychev has used Versor to go between contacts with DPRK procurement officials and companies abroad. The sanctions imposed Tuesday block any property or interests of the companies in the U.S. and block U.S. persons from doing business with the sanctioned entities, among other penalties. 

“The United States continues to root out illicit financial networks that seek to channel support from North Korea to Russia’s war machine,” Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson said in a statement.

“Alongside our allies and partners, we remain committed to exposing and disrupting the arms trade underpinning Putin’s brutal war in Ukraine.”

Russia and North Korea have sought to deepen ties amid both countries’ pariah status on the world stage — Moscow because of its war in Ukraine, and Pyongyang for its illegal nuclear weapons program and human rights abuses. 

North Korean media said this week that North Korean leader Kim Jong Un and Russian President Vladimir Putin have exchanged letters in which Kim called for strengthening ties into a “long-standing strategic relationship”.