Introduction

The year 2017 presented North Korea with the strongest economic sanctions it ever faced. The United Nations Security Council followed up its two rounds of sanctions imposed on Pyongyang in 2016 with another four sets of sanctions in 2017. The Security Council penalties against North Korea are only growing more stringent with time; bilateral sanctions imposed by the United States and countries neighboring North Korea are also growing more extensive and harsh.

More than ever, the sanctions imposed by the international community in 2017 had clear objectives. The heightened control over imports and exports of individual items translated into stronger sanctions that would not only affect North Korea’s foreign trade but impact its entire economy. The most prominent sanction is UNSCR 2371 (August 5, 2017). This resolution completely prohibited the procurement of anthracite coal, iron, iron ore, lead, lead ore and seafood from North Korea. Of particular note is that it froze the employment of additional North Korean nationals working overseas, to reinforce the restriction on foreign export earnings by the country. Further, it banned the opening of new joint ventures or the expansion of existing joint ventures with the regime. UNSCR 2375 (September 11, 2017), adopted in response to the sixth nuclear test conducted by Pyongyang, included even harsher sanctions on North Korea’s imports and exports. The resolution limited North Korea’s imports of crude oil and refined petroleum to 500,000 barrels during the fourth quarter of 2017, then restricted the supply of refined petroleum for 2018 to 2 million barrels, which accounts for 55 percent of the current supply, and capped the volume to 4 million barrels for crude oil, which equals current levels. All supply or transfer of natural gas liquids and condensates to North Korea were also banned completely. The resolution proceeded to ban the regime’s exports of textiles such as fabrics and clothes, ended future work authorizations of North Korea’s overseas laborers, and forbid the renewal of visas for those nationals already employed in other countries. Not only were new joint ventures with North Korean entities or individuals prohibited, but any such existing joint ventures were to be closed within 120 days of the adoption of the resolution. Stronger sanctions on cargo transfer took shape in the prohibition of North Korean vessels shipping cargo on the high seas.

* This article is part of 2017 The DPRK Economic Outlook

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