Tag: North Korea

Russia to grant North Korea “student” Visas to work abroad

The United Nations has placed heavy sanctions on North Korea, this includes North Koreans working abroad. When North Koreans are sent to work abroad, they keep very little of the money earned for themselves, and instead the money is sent back to the regime. It’s then used on the country’s weapons program, instead of boosting the economy and improving quality of life for citizens.

It is well reported that North Korean workers in the DPRK are working with Russian raw materials to make Russian goods, including uniforms for the Russian military. Now Pyongyang Papers have more examples of Russian companies that are employing workers from North Korea, despite sanctions making this illegal! This means they dont even need to move materials across country borders to exploit workers.

Worries of Human rights violations as well as breaking sanctions

In April 2024 the Russian Minister of Education and Science and the North Korean Minister of Education met and it was announced that more North Korean students will be granted visas to “study” in Russia. It’s expected that although some of these may be genuine students, a number of these visas will be used to circumvent sanctions and send North Korean workers to Russia. We think that these workers will be sent to work in clothing factories and construction, known to have horrible working conditions. The New Yorker has reported shifts up to 20 hours long and workers sleeping in unfinished buildings on construction sites.

North Korean and Russian companies named and shamed

At Pyongyang Papers we have been made aware that DPRK entity, Korea Ponghwa Trading General Corporation is working with Russian company Druzhba Limited Liability Company (ООО Дружба) to send 300 workers to their clothing factories. In contravention of UNSCR 2375 “Forbids member states from authorizing new employment contracts for North Korean workers.”, We suspect that student visas will be used to cover up the fact that the workers are being sent illegally, a tactic commonly used to circumvent sanctions. Druzhba are registered in the city of Odintsovo , a suburb of Moscow and their main activity is listed as the production of workwear. The General Director of the company is Litvinov Vladimir Alekseevich (Литвинов Владимир Алексеевич).

Ponghwa General Corporation has previously been involved in sanctioned activity in Russia; The UN Panel of Experts report for 2022 states that a Moscow-based representative of the company facilitated contracts to send DPRK workers to Russian agricultural and construction jobs in 2020 and 2021. As well as being a blatant breach of sanctions, this ongoing illegal activity will be harming those sent from North Korea to Russia as workers too.

Multiple companies exploiting North Korean workers

We are also aware of another Russian entity named Bridge Group LLC who are hiring 500 workers from North Korea (under the guise of being students to avoid sanctions). This is most likely only a small number of the true number of DPRK people being sent to work abroad in Russia, as we believe other DPRK companies are looking to partner with Russian companies hiring more garment workers, as well as workers for the construction industry. We will be looking at further articles over the coming months on this very subject.

As well as going against sanctions, we know that the North Korean workers will most likely be treated terribly, with little to no freedom and rights when working in Russia. At Pyongyang Papers we are always looking to raise the profile of these companies profiting from illegal activities, and so if you have any more information about the companies mentioned in this article, please get in touch with us.

North Korean workers exported for Russian gains

In the past, our team here at Pyongyang Papers have published multiple reports about the North Korean workers abroad; sent to places such as China and Russia to generate vital foreign revenue to keep the Pyongyang regime afloat and fund Kim Jong Un’s weapons program. This is in direct contravention of the UN Security Council resolutions. With help of close allies, the regime is brazenly continuing with the monetization of North Korean workforce through overseas work programs. How Russian firms like Rasonkontrans and Yav-Stroi Construction company exploited North Korean workers in the past is well documented . This time, our investigations have uncoverd some new plans between North Korean and Russian companies to exploit skilled labor force.

Company changes name and continues to break sanctions

It would appear that the Russian Based elements of DPRK Jihyang Associated Corporation is negotiating a decade long contract to dispatch hundreds of skilled North Korean laborers to Valdivostok on behalf of other DPRK-based companies, to work in construction and shipbuilding industries. The Jihyang Associated Corporation which, according to one Security Council Report, changed its name from Green Pine Associated Corporation in 2019, has a track record of evading UN sanctions and conducting business overseas . According to US Treasury, Jihyang Associated Corporation in the past has been responsible for approximately half of DPRK arms and related material exports, in particular maritime military equipment and vehicles. But this UN sanctioned, Reconnaissance General Bureau front is now possibley shifting some of its focus to exporting North Korean workers.

We have uncovered that one of the Russian companies that is negotiating with the Jihyang Associated Corporation is, Livadia Ship Repair and Shipbuilding Plant. The Vladivostok based company which is part of Dobroflot Group was previously reported to have expressed interest in recruiting skilled workers from countries like Bangladesh. However, the offer of cheap North Korean labor must be too lucrative for the Russian ship building firm to pass on. Livadia, a key player in Russian shipbuilding industries may also be under pressure to deliver ships and other maritime vessels to support the Russian war effort in the Ukraine.

The second North Korean Company involved in the negotiations is Songchongang Trading Corporation. The evidence suggests they are discussing providing skilled workers to Montazhno-Stroitelnoe Upravlenie-7 (MSU-7) , a Moscow based construction company that specializes in bridges and tunnels. It is unclear at this stage what specific skills the North Korean workers will bring to MSU-7 projects but online resources points to Songchonang having some expertise in electrical and mechanical engineering. Interestingly the MSU-7, has a sub division based in the Donetsk region. It is possible the scheme being drafted is a means of recruiting North Korean workers to help to rebuild war torn parts in the occupied Ukrainian territory. Is this the first step towards us seeing North Korean military directly getting involved in the war?

Rebuilding efforts after impact of war

UN Security council-imposed sanctions in 2017 prohibiting member countries from providing work authorizations for DPRK nationals and to repatriate all nationals earning income overseas by 22 Dec 2019, with aim to restrict the revenue streams for the regime. However, with the war with Ukraine in full flow and the country in a wartime economic footing, it seems the Russian companies are eager to exploit the cheap North Korean skilled workers. Early this year, there were news outlets reported the arrival of around 300 North Korean workers in Vladivostok. There are also reports of Russians and the Regime using North Korean workers for the rebuilding efforts in areas such as Donbas where the Russian armed forces has made significant gains.

The North Korean workers has a reputation for being hard working and obedient with regime appointed management teams policing the workers on behalf of the employers . Although they deal with any form of dissent strictly, Livadia and MSU-7 should take note of the reports of rioting among North Korean laborers in China earlier this year over unpaid wage disputes . There is only so far you can push an enslaved workforce before they are likely to push back!

Please get in contact with us at Pyongyang Papers if you can shed any light on these Russian companies and the DPRK workers being exploited there.

DPRK IT workers contracted to Guinea

Another day and another opportunity for the DPRK to illegally funnel money back to the regime in Pyongyang. New sanctions are added continuously to try and stop these illicit activities but this doesn’t deter the DPRK. Pyongyang Papers have uncovered yet another scheme to evade sanctions, an old tried and tested method – dispatching IT workers globally to create revenue streams.

Nefarious cyber engagement

DPRK IT workers are located all over the world, hiding their nationality and identities. The latest report by the former UN DPRK Panel of Experts details new tactics that have emerged and the IT workers now offer to provide their services free of charge to build trust and then seek long term contracts. Small companies are often targeted due to fewer hiring restrictions and are often approached using social media rather than freelance platforms. The priority is, unsurprisingly, blockchain and cryptocurrency projects. It can’t be argued that the regime doesn’t provide diligent and honest workers though, helpfully finding vulnerabilities to exploit or build into platforms to steal funds or conduct heists at a later date.

Overseas IT workers are able to earn $3000 – $5000 a month on average, although that figure can rocket to $10000 – $20000 a month for a highly skilled technician. Keep in mind reader, that this is what they are paid and excludes the ongoing theft that is sent home to fund the regime! If these IT workers are paid this much, it must be a significant amount of money routed back to the regime of Kim Jong Un to be spent on nuclear and missile development. All while the majority of the country remains firmly repressed with reports of increased thefts due to continued food shortages.

IT companies named and shamed

An dishonest regime needs an equally corrupt establishment to send its’ workers – enter two Guinea-based IT companies, Guinea Information Technology Development Corporation and N’deye & Tou Dista Corporation who have contracted at least 70 North Koreans for employment within their companies. Further investigations appear to show N’deye & Tou Dista Corporation working out of a charming little cybercafé, imaginatively named Cyber Café, in central Conakry. If you know any more about these companies, please do get in contact with us.

Store front of the Cyber Café

So, who are the individuals willing to help a heavily sanctioned regime? Cheick Aboubacar Traore, the President of the Information Technology Development Corporation is no stranger to working with the DPRK. Then following closely in his footsteps is Aissatou Kalissa, the president of the N’deye & Tou Dista Corporation. She been collaborating with the DPRK since at least 2019. Pyongyang Papers received no reply to our offer of comment from N’deye & Tou Dista or its company president. Clearly these two thought they would escape the eyes of the world, left to pursue their own devious ends. However, here at Pyongyang Papers we always aim to expose those committed to helping North Korea avoid sanctions!

Historical Ties

Guinea, of course, has form when it comes to facilitating the DPRK with evading sanctions, having agreed a deal in 2019 for thirty ‘technicians’ to work in the agricultural sector and help support a research center named after none other than Kim Il Sung. The relationship between the two countries began just one year after Guinea found its independence from Spain and then North Korea leader, Kim Il Sung, provided troops following a coup to further their cooperation of security. Guinea also sent military to Pyongyang for training. It is little wonder that Guinea is happy to disregard the sanctions to keep their mutually beneficial relationship going.

We think it is time the government of Guinea take the breach of sanctions, that are taking place on their soil, seriously and work to become a trusted part of the international community. They could start with denouncing the North Korean IT workers that are currently employed and enforcing the international laws surrounding illicit DPRK activity.

Moonstone Sleet & Sin Chong Min

The modern world is built on information technology and the reliance on IT is ever growing. Unfortunately, this reliance also provides opportunity for individuals to take advantage and look for ways to exploit systems and people for their own advantage. The North Korean regime is extremely good at being able to spot exploitation opportunities. Especially when it means providing funds for Kim Jong Un’s nuclear and ballistic weapons program.

North Korean IT workers

North Korea send thousands of IT workers overseas to countries including China & Russia. These IT workers then gain employment remotely with companies around the world, either directly or through contract IT companies. Not only is employing North Korean IT workers a breach of international sanctions, it is also extremely dangerous to the employing organization. Any degree of access given to the North Korean workers opens the potential for malicious intent and cyber activity. A recent example of this involves US security company named KnowBe4. The company was looking to hire a software engineer and hired an individual who turned out to be North Korean and was using a stolen US identity and immediately began loading malware onto a corporate device.

How do North Korean IT workers gain employment?

Back in 2022, the FBI, US Department of State & US Department of the Treasury released an advisory on North Korean IT workers that detailed some of the tactics used to trick companies and gain employment. These tactics include operating under fake or stolen identities and conspiring with US nationals to pose as US citizen. Recently, a man from Tennessee was arrested for allegedly running a laptop farm and providing North Koreans with US internet connections to enable their activity.

Moonstone Sleet

The lines between IT work and malicious cyber activity become very blurred when North Korea are involved. In May of this year, Microsoft released a detailed investigation into a new threat actor labelled Moonstone Sleet. Microsoft’s investigation noted that Moonstone Sleet actors were actively trying to gain employment in software development positions at legitimate companies but were also carrying out cyber attacks at the same time.

Pyongyang Papers can reveal that we believe a DPRK IT worker named Sin Chong Min manages a number of IT workers that have been conducting activity associated to Moonstone Sleet. Microsoft’s investigation also detailed the use of an online game called DeTankWar (AKA DeFiTankWar, DeTankZone TankWarsZone). The game looked legitimate and had a substantial social media presence but appears to be a fraudulent copy of the online game DeFiTankLand. The fraudulent website appeared to use a logo in the style of the legitimate website as well as some of the screenshots of the game play.

The website logos from the fraudulent DeTankZone & legitimate DefiTankLand websites

Large revenues

Our sources have informed us that Sin Chong Min is believed to be located on the North Korean/China border. Reports suggest that activity by the group is ongoing as recently investigated malicious packages displayed tactics, techniques & procedures (TTPs) aligned with Moonstone Sleets known activity. The latest report by the former UN DPRK Panel of Experts states that DPRK IT workers can earn the regime between $250 million & $600 million annually. This is a huge amount of revenue heading back to the regime when you consider this figure does not include other cyber activities such as cryptocurrency thefts.

The North Korean regime will always find ways to evade sanctions is pursuit of more advanced and lethal weapons. IT workers abroad will continue to play a pivotal role in this. Detection of North Korean IT workers such as Sin Chong Min maybe extremely difficult. Pyongyang Papers would urge any business looking to hire IT workers, to follow the May 2022 advisory and the updated guidance issued in October 2023 by the US and South Korea authorities.

If you have any additional information regarding Sin Chong Min or any other North Korean sanctioned activity, please get in touch through the ‘Contact Us’ page.

DPRK companies continue tobacco trade

Over the last few months, many news outlets have reported on the strange sight of hundreds of rubbish-filled balloons falling over South Korea. This petty act was not the work of a school child, but the activity of a nation’s government – North Korea. These balloons were filled with rubbish including household waste, manure and cigarette butts. It’s these cigarette butts that are often gathered by North Koreans after large public events to sell to garment-makers, according to Radio Free Asia. Ironically, before they end up in balloons or being foraged by desperate North Koreans, cigarette butts are integral to one of North Korea’s most valuable industries – tobacco.

The importance of tobacco

The DPRK’s tobacco industry is hugely important to the regime, with companies such as the North Korean General Tobacco Corporation (NKGTC) owned by the state. It is believed that 2.3% of North Korea’s arable land is devoted to growth of tobacco – the 4th highest percentage of arable land dedicated to tobacco in the world! This clearly undermines the regime’s attempts to appear responsible by introducing tougher legislation on smoking in public spaces and persuading citizens to quit their habits. Despite this, tobacco products are still viewed as a status product in North Korea and is valued as a luxury product.

Here at Pyongyang Papers we have investigated and written a number of articles highlighting sanctioned luxury goods dealings between DPRK and other nations supplying such goods. One such luxury item that we have reported on previously is tobacco. Just last year, British American Tobacco was fined $635m after a subsidiary admitted selling cigarettes to North Korea in violation of US sanctions. According to the United Nations Security Council, tobacco is the fourth largest import into the country, so losing a supply of tobacco on this scale is sure to lead to Kim Jong Un, a lifelong smoker, and the regime looking for other suppliers of this valuable commodity.

Ponyong Tobacco trading Corporation & G-EM Aromatics Ltd

Pyongyang Papers understand that North Korean Ponyong Tobacco Trading Corporation is working on a deal to purchase tobacco and additives from a Bulgarian tobacco flavoring company “G-EM Aromatics”, a company based in Sofia, Bulgaria with Manolis Gkoulgkountinas listed as the Director according to his LinkedIn profile. Surely this activity is in direct violation of UN and US sanctions? Yes. In typical fashion, to evade sanctions and hide dealings of North Korea, any deal will be facilitated by a Russian company as the buyer. The Russians are fully aware of their involvement, and we believe that it is highly likely that Ponyong branded cigarettes will find their way into the Russian market.

A selection of tobacco flavors on the G-EM website

Song In Su

It seems that Russian linked entities are playing an increasingly central role in North Korea’s tobacco related sanctions evasion. We have information that a DPRK official, based in Russia, Song In Su has aided a shipment of Brazilian cut tobacco to the DPRK entity Korea Ryugyong Corporation worth hundreds of thousands of dollars. Pyongyang Papers has written extensively about Ryugyong Corporation previously, highlighting how this state owned entity is pumping funds into the DPRK’s nuclear weapons program. As a result, this new business deal is particularly concerning. Further investigation has revealed that, in 2023, Song In Su aided shipments of tobacco to the previously mentioned DPRK entity – Ponyong Tobacco Company, again worth hundreds of thousands of dollars.

As for the seller of this Brazilian-cut tobacco, we have been made aware that a Hong Kong-based trading company named “The Honor Trading International Ltd” are acting as facilitators in this deal. We understand that this company is not new to enabling prohibited shipments to DPRK and may be a frequent supplier to the country. Their actions mean that they are essentially a regular investor into the nuclear weapons program of a dangerous regime. From what we have uncovered so far It is clear that sanctions alone are not stopping businesses from getting involved with North Korean activity, and more must be done to actively stop them.

If you have any information regarding the North Korea tobacco trade or any of our investigations please get in touch using the ‘contact us’ page.

From Russia to North Korea – Ardis

The North Korean weapons program continues to be Kim Jong Un’s main priority. The ordinary citizens of North Korea are the ones who ultimately suffer in Kim’s desire to develop a deadly arsenal. In February this year Kim stated that South Korea was the “primary enemy … and can be attacked and destroyed at any time.” The regime has spent the last decade ensuring that the weapons at their disposal have been modernized and enhanced, ensuring that prolonged peace on the Korean peninsula seems increasingly unlikely. Sophisticated weapons require thousands of components and with current sanctions are aimed at ensuring North Korea is unable to develop these weapons. Unfortunately, this is where companies such as Ardis Group of Companies can profit, providing they are willing to break those sanctions!

Ardis – A history of breaking sanctions

One company that is no stranger to working with, and is a key supplier of bearings and other items to North Korea is Ardis Bearings. One of the companies that sits within the Ardis Group of Companies LLC. Ardis Bearings were originally sanctioned by the United States Treasury in 2017 for supplying dual-use components to the Tangun Trading Company, also known as Korea Kuryonggang Trading Corporation, A North Korean company designated by the UN & US for its involvement in the DPRK nuclear and ballistic weapons program.

Igor Aleksandrovich Michurin (Мичурин Игорь Александрович), the General Director of Ardis Bearings, was also sanctioned at the time. This was followed up by an additional sanction in March 2022 against the Ardis Group of Companies LLC for transferring sensitive items to North Korea’s missile program. Igor and his companies are a key supplier of bearings plus other items to DPRK. Although not listed as the CEO, Igor has several companies at his disposal in his attempts the hide his illicit activities. Some of the companies include:

• Gatchinskiy Bearing LLC
• LLC PKF “Profpodshipnik”
• Belagromekhanizm LLC
• Trading House Ardis LLC
• Bearings on Lipetsk Street, Moscow

From our current investigations we believe that Igor uses his contacts and his various companies to act as the middleman in procuring goods and services for the DPRK. These goods will then be transported to North Korea using unofficial channels and well used smuggling routes. Igor earns a percentage in commission as part of the deal but the DPRK are desperate for the items he can source and supply, to progress their weapons programs, so are willing to pay inflated prices. Unfortunately, Pyongyang Papers does not have all the information surrounding Igor and the networks used to smuggle goods to North Korea. We welcome any additional information or details we can investigate through our ‘Contact Us’ page.

Bearings on Lipetsk Street, Moscow. November 2023

Additional activities

Igor and his group of companies have years of experience when dealing with North Korea. That experience has obviously led to other opportunities. A 2018 article from Reuters details how Igor created a construction company – Mistroy LLC to employ North Korean laborers. Pyongyang Papers can also reveal that in the past Igor also hosted a number of DPRK IT workers at what is now an obsolete company, Ardis Financial Construction Company.

Its clear that Igor and his group of companies are proficient at avoiding sanctions. And after Vladimir Putin’s recent trip to North Korea, the new defense pact may signal an era of Russia & its companies being even more willing to help the DPRK advance its nuclear and ballistic weapons. How China will react to a strengthened relationship between North Korea & Russia remains to be seen but as long as there is money to be made or mutual benefits gained without proper consequences, entities such as Ardis and countries such as Russia will continue to break international sanctions. We are still investigating Igor and his group of companies and welcome any additional information regarding his company’s activities with North Korea. If you have any additional information please get in touch via the ‘Contact Us’ page

DPRK sanctions evasion brewing in Mongolia

Imagine warming up on a cold evening in Ulaanbaatar with some nutritious food on the 15th floor of the Daco Building, overlooking the skyline of Mongolia’s capital city. Sounds idyllic but there is an issue…. The restaurant is operated by the North Korean regime and is breaking sanctions by employing North Korean workers and directly funding Kim Jong Un’s nuclear and ballistic weapons program.

North Korea and the restaurant business

Pyongyang Papers has reported on DPRK activity in Mongolia & North Korean restaurants previously. North Korean restaurants around the world are believed to earn the regime about $700 million annually and are also used to launder money for the country, with many restaurants allegedly run by Reconnaissance General Bureau (RGB) agents. The RGB is the DPRKs primary intelligence agency and is responsible for a huge range of activity from obtaining foreign currency to running much of the country’s cyber capabilities.

UN resolutions forbid the employment of North Korean workers abroad and all North Korean workers were supposed to be repatriated back to DPRK by the end of December 2019. This deadline passed but North Korea has continued to send its citizens abroad, with greater numbers, in fresh batches as the country has relaxed its Covid-19 pandemic controls. Estimates suggest that up to 100,000 North Koreans worked overseas in 2023.

During the pandemic years, there were several reports of restaurants struggling and closing with limited custom due to pandemic restrictions and enforced sanctions. It appears that these issues may now have disappeared as the latest report, from the currently disbanded Panel of Experts, details dozens of restaurants operating across Asia in countries such as China, Russia & Laos. The report includes imagery taken from social media confirming the presence of North Korean nationals working at the restaurants.

The Pyongyang Baek Hwa Restaurant

One restaurant that isn’t covered in the Panel of Experts report is the Pyongyang Baek Hwa Restaurant in Ulaanbaatar, Mongolia. We have been informed that a delegation of DPRK restaurant workers are set to travel to Mongolia to work in the re-opened restaurant. The restaurant was confirmed closed during a visit in 2022 by DailyNK but is now back open. The restaurants Facebook page became active again during December 2023 and has been offering sim cards for use in South Korea! The phone number listed against these posts has also recently advertised for a chef and a dishwasher to be trained at a Korean restaurant.

The restaurant signage is still displayed on the Daco Building – Street view from 2023

As part of our investigations, we can confirm that the restaurant is still located at the same address as it previously was and we received no response to our offer of comment by the restaurant itself. Pyongyang Papers has not been able to confirm if the advertisements for staff at a Korean restaurant are directly related to the Pyongyang Baek Hwa restaurant but we continue to investigate North Korean activity in Mongolia and will publish any findings at a later date.

The Pyongyang Baek Hwa restaurant is not the only restaurant to re-open as North Korea continues to find ways to circumvent sanctions and earn much needed currency for the regime. In fact, some of the restaurants appear to be very busy and are clearly serving the regime well. If countries including China, Russia, Laos & Mongolia continue to facilitate the regimes actions so easily then the unfortunate North Korean citizens who are forced to work abroad will continue to be exploited treated like slaves.

If you have any information regarding the Pyongyang Baek Hwa Restaurant or any other sanctioned North Korean activity, please get in touch through the ‘Contact Us’ page.

Russia to grant North Korea “student” Visas to work abroad

By pp_admin / December 18, 2024

The United Nations has placed heavy sanctions on North Korea, this includes North Koreans working abroad. When North Koreans are…

YONGBYON NUCLEAR SCIENTIFIC RESEARCH CENTRE

By pp_admin / December 16, 2024

Sanctioned Entity – DPRK EU Sanctions ListSource: https://webgate.ec.europa.eu/europeaid/fsd/fsfFacilities capable of producing fissile material for military uses, including a 5MW (e)…

North Korean workers exported for Russian gains

By pp_admin / November 27, 2024

In the past, our team here at Pyongyang Papers have published multiple reports about the North Korean workers abroad; sent…

DPRK IT workers contracted to Guinea

By pp_admin / October 17, 2024

Another day and another opportunity for the DPRK to illegally funnel money back to the regime in Pyongyang. New sanctions…

Moonstone Sleet & Sin Chong Min

By pp_admin / September 16, 2024

The modern world is built on information technology and the reliance on IT is ever growing. Unfortunately, this reliance also…

DPRK companies continue tobacco trade

By / August 12, 2024

Over the last few months, many news outlets have reported on the strange sight of hundreds of rubbish-filled balloons falling…

NATIONAL AEROSPACE TECHNOLOGY ADMINISTRATION (NATA)

By pp_admin / July 29, 2024

Sanctioned Entity – DPRK EU Sanctions ListSource: https://webgate.ec.europa.eu/europeaid/fsd/fsfNATA is involved in the DPRK’s development of space science and technology, including…

From Russia to North Korea – Ardis

By / July 16, 2024

The North Korean weapons program continues to be Kim Jong Un’s main priority. The ordinary citizens of North Korea are…

DPRK sanctions evasion brewing in Mongolia

By / June 6, 2024

Imagine warming up on a cold evening in Ulaanbaatar with some nutritious food on the 15th floor of the Daco…

ВОСТОЧНАЯ СТИВИДОРНАЯ КОМПАНИЯ

By pp_admin / May 31, 2024

Sanctioned Entity – DPRK EU Sanctions ListSource: https://webgate.ec.europa.eu/europeaid/fsd/fsfOOO “Восточная Стивидорная Компания”.Data:Name: Восточная Стивидорная КомпанияAddresses:14a, ul. Vnutriportovaya, Nakhodka, 692941, RUSSIAN FEDERATIONAliases:Eastern…

Here at Pyongyang Papers, we have investigated multiple illicit oil trade deals so the following investigation will be no surprise to regular readers. The more strategic relationship between Moscow and Pyongyang has been powered by DPRK weapons sales to Russia, for use against Ukraine. South Korea estimate that North Korea has shipped 6700 containers of ammunition since September 2023. We do not believe the North Korean regime would do this without some form of payment and it appears that fuel and oil is likely part of Russia’s offer.

From previous deals of this nature, we know that the DPRK are proficient at using “middle men” to hide their trade deals but recent activity by Russia and North Korea appears to be more bold. After the recent Russian veto, the UN Panel of Experts is currently disbanded and the US have been quick to announce new sanctions will be imposed on Russia for transporting more than 165,000 barrels of refined petroleum to North Korea in March alone!

Reports of Russian oil heading to North Korea

The Russian supplies of oil to North Korea were first reported by the Financial Times and the Royal United Services Institute (RUSI) in March and included satellite imagery of North Korean tankers docked in Russian ports. However, this is not the only oil deal between Russia and DPRK. Pyongyang Papers have been informed that a North Korean entity named Sinyang Corporation are working with a Russian representative on a deal to supply hundreds of thousands of tonnes of Russian diesel oil to North Korea. We believe that the first shipment was delivered in March.

Images of the North Korean tankers in Russian port, taken from Financial Times and RUSI investigation

Under UN sanctions imposed by the 1718 committee, countries are legally required to report sales of refined petroleum to the Security Council. However, with the committees Panel of Expert mandate now expired Russia and North Korea obviously believe trades of sanctioned cargo can be conducted directly with ease. We would be extremely surprised if Russia provides any honest reports of sales to the UN, even with the imagery above confirming North Korean activity at Russian ports!

Additional deals between the two countries

During our investigations, Pyongyang Papers also discovered another North Korean company looking to purchase diesel fuel from Russia. The Korea Sungnisan Trading Corporation was sanctioned back in 2022 for acting as a front company associated with the Ministry of Rocket Industry and continue to ignore sanctions imposed against them. The proposed deal involves using the already sanctioned Russian state transportation company, Sovcomflot, to deliver the diesel fuel into the North Korean port of Nampo. Sovcomflot were originally sanctioned in early 2022 due to the Russian invasion of Ukraine and were sanctioned again in February of this year. Recent reports from the CEO, Igor Tonkovidov suggest that sanctions are impacting the companies ability to trade. This may go some way to explaining why they are so keen to help facilitate trade with North Korea, especially if they think the shipments can go unpunished!

Sanctions may be impacting Russian companies but with North Korea’s desire for oil and help, they are able to find it all to easy to continue conducting sanctioned and often dangerous activity. The recent Panel of Experts Report contains a letter from 55 member states detailing a breach in the yearly 500,000 barrel cap of oil exports to North Korea before the middle of 2023 including imagery. The letter recommended that the committee should inform all member states to immediately cease any supply of petroleum products to the DPRK for the remainder of 2023. Of course, the evidence was disputed by Russia and China who both failed to endorse the proposal and continue to hamper efforts to limit North Korea’s nuclear and ballistic missile program.

Please get in touch with us if you have any information on the companies or trades mentioned in this article. Pyongyang Papers appreciates any information that could help with future investigations and articles.

Korea Chinson General Corporation continue in Africa

Pyongyang Papers has continued to investigate Korea Chinson General Corporation and their activities in Africa. Our previous article investigated a contract between the Nigeria company Skynext Services Ltd and Chinson in an obvious violation of UN Security Council resolutions which ban all member states from employing DPRK workers. The aim of this ban is to try and limit the funds heading back to the regime, where it is used to advance the North Korea nuclear & ballistic weapons program.

More Chinson activity in Nigeria

Korea Chinson General Corporation continue to provide North Korean workers to companies in Nigeria. Pyongyang Papers have been informed that Chinson have been supplying workers to the Soroade Bakery & Confectionery Company. Soroade are based at New Auditorium Road, Boun Village, Mowe, Ogun State and lists Husaini G Dumbarambe as its Director. Social media posting from late 2022 appear to verify our claim and shows North Koreans associated with the bakery enjoying some free time.

Social media posting showing North Korean workers in Nigeria

Chinson active in other African countries

Nigeria is not the only country that the Korea Chinson General Corporation actively look to send North Korean workers to. Ethiopia also appears to be lucrative for the company as they continue to exploit DPRK citizens in order to maker money for the regime. Our sources have also informed us of a contract between the Chinson office in Ethiopia & the Ethiopian Construction Design and Supervision Works Corporation (ECDSWC). The contract was signed on 1 November 2022 and covers a two-year period for DPRK geophysicists, a Hydro-Mechanical engineer and a team leader/civil engineer. ECDSWC are an engineering company that was created by merging three companies together with the “commitment to the creation of knowledge base and provision of excelling & sustainable engineering solutions to the challenges of our people throughout Africa.”

In October 2016 the Ministry of Foreign Affairs of Ethiopia announced that ECDSWC and the Korea Rural Corporation (KRC) from South Korea had signed a memorandum of understanding encouraging both sides to secure projects in which both are mutually interested. Pyongyang Papers is certain that the memorandum does not include hiring North Korean workers! Pyongyang Papers contacted the Ethiopian Construction Design and Supervision Works Corporation about the contract but they did not reply.

Add the contract to the claims in the latest UN Panel of Experts report that an official from Chinson and an official from the DPRK embassy in Nigeria traveled to the Niger to collect hundreds of thousands of US dollars in cash, and bought the funds back to Nigeria. It becomes very clear that North Korea continues to find ways to circumvent sanctions and fund its nuclear & ballistic weapons program as ordinary citizens continue to suffer. Nigeria and Ethiopia are both UN member states and need to prove that they enforce the sanctions they are committed to.

As always, if you have any information North Korean sanctions evasion or Chinson, please get in touch through the ‘Contact Us’ page.

Nam Un Gyong heading back to the DPRK

Pyongyang Papers has continued its recent investigations into the illicit money-making schemes of North Korean individual Nam Un Gyong and her daughter, Ri Son Chong. As previously reported, Nam owned and ran a restaurant called the Blue Flower in Cambodia, this is a blatant violation of UN sanctions which prohibits DPRK individuals working abroad. The money earned from DPRK nationals abroad such as Nam and her daughter, is sent back to the DPRK regime and continues to fund its nuclear weapons program.

The Cambodian government ordered the Blue Flower to close and so we have been keen to see what Nam and Ri have been doing since the closure of the restaurant.

Ri Son Chong was studied business administration at a University in Cambodia, but we know she is also involved in the illicit endeavors of her mother and some of her own. Ri Son Chong helped both in the kitchen and on the cashier desk at the Blue Flower until its closure, whilst also facilitating the production and sale of kimchi to restaurants in the local area of Phnom Penh. We contacted the Blue Flower Facebook page after releasing the last article for comment and the page name and display photo was swiftly changed…

Nam & Ri movements

Pyongyang Papers believes that Nam, and her daughter Ri Son Chong traveled from Phnom Penh to Beijing in the middle of January and Nam’s plan is to head to Shenyang, then Dandong and then back to Beijing before finally traveling back to the DPRK! In our last investigation we noted how Nam had parted ways with her former business partner and was looking for a new partner to open a joint venture restaurant in China. With Nam planning to head back to the DPRK we are unsure where this leaves the plan for the joint venture restaurant in China. Maybe Nam has passed the plan onto another DPRK national in China. If you have any information on the status on the joint venture please get in touch via the ‘Contact Us’ page.

During our investigations, we have also uncovered that Nam Un Gyong also has another daughter – Ri Son Hwa. Ri Son Hwa attended a foreign university and currently works as a trading employee at the Rakwon Guidance Bureau. The Rakwon Guidance Bureau is believed to sit under ‘Room 39’, a secretive party organization which seeks to maintain foreign currency for the North Korean leaders.

It is well documented that ‘Room/Bureau 39’ is a secretive North Korean party organization that seeks ways to maintain the foreign currency slush fund for the country’s leaders

Luxury Goods

Investigations by Pyongyang Papers have also uncovered additional details about Nam Un Gyong and Ri Son Chong activities. It appears the duo were also involved in the luxury goods trade. We are aware of a deal involving both Ri Son Chong and Nam with a Thailand-based DPRK Korea Chilsongmun Trading Corporation (CTC) employee. Ri Son Chong and Nam have spent hundreds of thousands of $’s on alcohol, buying and exporting it from Cambodia to DPRK. Importing and exporting luxury goods to and from North Korea also contravenes UN sanctions, however it is widely known that Kim Jong Un is partial to unhealthy habits such as drinking and smoking. We wonder whether Ri Son Chong and Nam’s shipment is headed straight for their leader? Nam and Ri Son Chong also worked with individuals Heng Sovannary and Srey Pov, based in Cambodia, to export more alcohol to DPRK.

The purchasing of luxury goods isn’t limited to just alcohol as we believe that Ri Son Chong has been buying Tommy Hilfiger purses as gifts for friends on her return to the DPRK. We also know Ri Son Chong was looking into other high-end brands such as Bottega Veneta.

Moving Money

It is clear that both Nam and her daughters have the connections and know how to set up these trade deals but we have been questioning how Nam has managed to earn currency overseas as a North Korean citizen without raising suspicion from the banking authorities. Our investigations have uncovered that a Cambodian individual that worked for Nam at her restaurant allowed her to use their bank account to receive large amounts of money. This is a tried and tested method for North Koreans who are earning illicitly abroad.

We are glad to hear that the Cambodian authorities are enforcing sanctions, we hope that China will follow suit and end Nam and her daughters sanction evasion activity. However, based on some of our previous investigations- we aren’t that confident!

Pyongyang Papers will continue to investigate Nam’s sanction breaking activity- if you are aware of any information then please contact us.