China has curbed oil exports to the Democratic People’s Republic of Korea (DPRK) in response to the recently imposed UN Security Council sanctions on Pyongyang for its nuclear and missile tests.
China’s Ministry of Commerce (MOFCOM) has stated that it will stop the export of liquified natural gas and gas condensate to the DPRK, while limiting exports of refined oil.
Pursuant to the UN resolution, total refined oil should be capped at 500,000 barrels starting next month until the end of the year.
MOFCOM noted that it will comply with the UN order with respect to the two million barrels ceiling on global annual export of refined oil to the DPRK.
Once the total figure touches the cap, the Chinese government will call off refined oil exports to the country.
China has mandated the DPRK to completely utilise the exported refined oil products for civil purposes and not to further its nuclear and ballistic missile programme.
Earlier this month, MOFCOM banned the opening of new joint ventures (JV) or cooperative entities with DPRK entities or individuals, as well as the expansion of existing JVs through further investments.
Coupled with the policy decisions on oil, the country has put an end to the import of textiles from the DPRK, in a move that is expected to impact Pyongyang’s economy.
According to the Press Trust of India (PTI), China accounts for around 90% of Pyongyang’s foreign trade.
Reuters cited General Administration of Customs’ report, indicating that the country’s total trade with North Korea was $3.61bn in the first eight months of the year, marking an increase of 7.5% from the corresponding period last year.