The U.S. Department of Treasury issued effective fines on two Russian individuals and three Russian companies for weapon transfers from Russia to North Korea that allegedly included ballistic missiles intended for use in Ukraine. Those facing sanctions are individuals Rafael Anatolyevich Gazaryan and Aleksey Budnev, as well as organizations Trans Kapital Limited Liability Company, the Rafort Limited Liability Company, and Tekhnologiya, OOO. More details were provided in the official press release.
In effect, all of these entities’ assets and property interests within the United States are now frozen; transactions involving these assets are banned unless authorized by the Office of Foreign Assets Control (OFAC). In addition, any person or institution that engages in transactions or specific activities with the sanctioned entities may find themselves subject to sanctions or legal actions. This includes transactions such as financial contributions or goods and service exchanges.
North Korea has contested these allegations, denying that they supplied weapons to Russia. Kim Yo-jong, the sister of North Korean leader Kim Jong-un, stated that these are false rumors designed to mislead the global public. This is in spite of evidence presented by South Korea and the U.S. suggesting the implementation of North Korean arms in Ukraine by Russia.
These sanctions are part of ongoing efforts by the State Department and the Department of Treasury to dissuade weapon transfers and ballistic missile tests in Ukraine. Previous action was undertaken in January, when one individual and three entities were sanctioned for facilitating ballistic missile transfers from North Korea to Russia. The recent enforcement action expands the sanctions to more individuals and companies engaging in these cooperative military ventures between Russia and North Korea.