Summary
Following the 3 July and 28 July 2017 DPRK intercontinental ballistic missile launches, the UN Security Council adopted UNSCR 2371 on 5 August 2017, bolstering the increasingly comprehensive nature of the DPRK sanctions regime.
The resolution broadened the existing sanctions by specifying new items, individuals, and entities subject to sanctions measures, expanding the joint ventures ban to any DPRK individual or entities, and tightening the coal, iron, and iron exports ban by removing the total allowed coal exports limit and prohibiting any iron and iron ore exports (both subject to specific exemptions). The resolution also imposed a port entry ban on designated vessels, targeted additional DPRK export commodities constituting a significant revenue source – lead, lead ore, and seafood, and imposed a limit on the total number of work authorizations for DPRK nationals working abroad (capped at the present level). UNSCR 2371 also decided that DPRK shall not deploy or use chemical weapons and demanded that DPRK complied with its obligations under the Vienna Convention. In order to facilitate the work of humanitarian organizations and diplomatic missions in DPRK, the resolution expressly exempted related financial transactions involving DPRK Foreign Trade Bank and Korean National Insurance Corporation and sought to increase sanctions implementation by clarifying a number of provisions and requesting additional analytical resources to strengthen the Panel of Experts’ ability to analyze DPRK’s sanctions violation and evasion activities.
On 8 August 2017, US President Trump declared that provocative DPRK actions would be met with “fire and fury the likes of which the world has never seen” and subsequently proceeded to hold unprecedented military discussions with China and further joint military exercises with South Korea, while the US Secretary of State Tillerson reiterated US openness to dialogue. DPRK responded by threatening to launch a missile near the US Western Pacific territory of Guam, launching an intermediate ballistic missile on 29 August 2017, which prompted same-day condemnation in a UN Security Council Presidential Statement (S/PRST/2017/6), and conducting its sixth and largest nuclear test on 3 September 2017, which triggered an artificial earthquake. Two days later, amidst the rising tensions, UN Secretary General António Guterres, “unequivocally” condemned the test, stressed the importance of UNSC unity in addressing the crisis, and referred to the risk in relation to the DPRK as “the most dangerous crisis we face today.”
Purposes
Coerce
Coerce DPRK to cease nuclear tests and ballistic missile launches, end WMD programs, retract Nuclear Non-Proliferation Treaty (NPT) withdrawal, and return to the stalled Six-Party Talks to engage in negotiations, including about the denuclearization of the Korean Peninsula.
Constrain
Constrain DPRK's nuclear proliferation and access to nuclear, chemical, biological, and conventional weapons and their delivery systems related technology.
Signal
Signal support for non-proliferation norms, specifically the NPT.
Sanctions type
Mandatory
Ongoing sanctions:
- Arms imports and exports embargo;
- Luxury goods imports ban;
- Asset freeze;
- Travel ban;
- Financial sector restrictions (ban on joint ventures and operation of DPRK banks abroad; ban on new foreign financial institutions activity in DPRK; closure of existing representative offices, subsidiaries, or banking accounts in DPRK; and prohibition of public and private financial support for trade with DPRK);
- Commodity imports ban (aviation fuel);
- Commodity exports bans (coal, iron, iron ore; gold, titanium ore, vanadium ore, and rare earth elements; copper, nickel, silver, zinc; statues);
- Diplomatic sanctions (limit use of DPRK territory abroad for other than diplomatic/consular activity; limit number of bank accounts for DPRK diplomatic/consular missions and staff; suspension of scientific and technical cooperation with DPRK representatives or sponsored groups/individuals);
- Transportation-related prohibitions (ban on leasing or chartering of vessels and aircraft and related provision of crew services to DPRK; ban on the use or servicing of DPRK registered or flagged vessels; import of new vessels and helicopters; procurement of vessels and aircraft services; insurance, reinsurance, and registration of DPRK vessels; and their mandatory de-registration).
Adjustments to ongoing sanctions:
- Proliferation sensitive goods and technology imports and exports ban expanded to new items.
Newly imposed sanctions:
- Port entry ban;
- Commodity exports ban (lead and lead ore; seafood);
- Restriction on the total number of work authorizations for DPRK nationals working abroad.
Conditional
Ongoing conditional restrictions:
- Bunkering ban;
- Expulsion/repatriation;
- Financial sector restrictions (financial services, asset and resource transfers);
- Vessels port entry ban;
- Aviation ban;
- Provision of specialized teaching and training to DPRK nationals;
- Asset freeze on DPRK government and party officials;
- Arms and proliferation sensitive good and technology ban;
- Transportation-related restrictions (vessels de-flagging, redirection, and inclusion in asset freeze);
- Travel ban.
Designations
Maximum number of designees during the episode: 62 individuals and 50 entities.
Potential scope
Potential scope of impact
UN sanctions are likely to have significant impacts on the general population, since they include restrictions on the import of widely used commodities (such as oil), major commodity exports, and/or the transportation or financial sectors that affect the entire economy.
Implementation
Sanctions Committee and Panel of Experts in place. Designation criteria were specified and targets designated. Additional vessels designated. Enforcement authorities specified.
Effectiveness
Coercion
Policy outcome
DPRK continued to engage in proscribed activity and showed no intention of returning to the NPT or Six-Party Talks nor a willingness to negotiate denuclearization, engaging in further ballistic missile launches and nuclear test instead.
Sanctions contribution
UN sanctions presented the primary means through which the international community channeled its reactions to DPRK's continued violations. Other unilateral sanctions and threat of military use of force also contributed to DPRK's continued engagement in proscribed activities.
Constraint
Policy outcome
Sanctions made it more difficult for DPRK to generate income and procure prohibited goods and technology, but the episode was too short to observe discernible effects of the new sanctions, and the country continued to engage in proscribed activities.
Sanctions contribution
UN sanctions presented the primary instruments of constraint. Other sanctions and threat of military use of force also played an important role in constraining DPRK’s nuclear program, as did stronger implementation of UN sanctions by China in 2017.
Signaling
Policy outcome
Non-proliferation norm was clearly articulated in Security Council's official statements that strongly condemned DPRK's nuclear and missile activities; DPRK was largely stigmatized as an international pariah and perceived as a threat to international peace and security.
Sanctions contribution
Sanctions remained the primary means for signaling the non-proliferation norm, but US rhetoric and threat of use of force also contributed to the signal.
Overall
Unintended consequences
Increase in corruption and criminality, strengthening of authoritarian rule, increase in human rights violations, increase in international regulatory capacity in different issue domains, increase in international enforcement capacity in different issue domains, resource diversion, significant burden on implementing states, humanitarian consequences, widespread harmful economic consequences, other (impact on humanitarian aid, international organizations, and foreign diplomatic missions in DPRK).
UN sanctions resolutions guide
Substantive
- Condemns the 3 July and 28 July 2017 ballistic missile launches by DPRK
- Decides that DPRK shall not deploy or use chemical weapons
- Demands that DPRK fully comply with its obligations under the Vienna Convention on Diplomatic Relations and the Vienna Convention on Consular Relations
Existing sanctions
- Imposes UNSCR 1718 asset freeze on new designees (Annex I and II) and specifies asset freeze exemption for financial transactions with DPRK Foreign Trade Bank or Korean National Insurance Corporation if solely for operation of diplomatic or consular missions in the DPRK or humanitarian assistance undertaken by or in coordination with the UN
- Imposes UNSCR 1718 travel ban on new designees (Annex I)
- Expands UNSCR 1718 arms and WMD-related import and export embargo by additional items, materials, equipment, goods, and technology, including conventional arms (to be adopted by the Sanctions Committee or UNSC)
- Replaces UNSCR 2321 coal, iron, and iron core exports ban from DPRK by a new coal, iron, and iron core exports ban from DPRK and specifies exemptions for iron and iron ore exports subject to already finalized written contracts and imported within 30 days from the date of adoption of the resolution (post-transaction notification requirement) and for coal not originating in DPRK and not generating revenue for prohibited activities transported through the Port of Rajin (Rason) (upon prior notification)
- Expands UNSCR 2270 banks and joint ventures ban by prohibition on opening of new joint ventures or cooperative entities with DPRK entities or individuals and the expansion of existing joint ventures through additional investments (regardless of whether or not acting on behalf of the government of DPRK) unless a prior case-by-case exemption was granted by the Sanctions Committee
New sanctions
- Imposes port entry ban on designated vessels and specifies exemptions for emergency, return to port of origin, humanitarian, or other pre-approved purpose
- Imposes seafood (including fish, crustaceans, mollusks, and other aquatic invertebrates in all forms) exports ban from DPRK and specifies exemptions for seafood exports subject to already finalized written contracts and imported within 30 days from the date of adoption of the resolution (post-transaction notification requirement)
- Imposes lead and lead ore exports ban from DPRK and specifies exemptions for exports subject to already finalized written contracts and imported within 30 days from the date of adoption of the resolution (post-transaction notification requirement)
- Imposes a limit on the total number of work authorizations for DPRK nationals in MS (capped at the number of authorizations on the day of adoption of the resolution) and specifies exemptions for the delivery of humanitarian assistance, denuclearization, and other approved purpose (subject to prior case-by-case approval)
Enhanced implementation measures
- Clarifies that UNSCR 2270 and 2321 prohibition on registering, using, owning, leasing, operating, certifying, servicing, or insuring DPRK vessels applies to chartering vessels flagged by the DPRK
- Clarifies that UNSCR 2094 conditional prohibition on financial services or transfers (including bulk cash) that could contribute to proscribed activities or sanctions evasion applies to clearing of funds through all MS territories
- Clarifies that companies performing financial services commensurate with those provided by banks are considered financial institutions for the purposes of UNSCR 2094 conditional prohibition on financial services or transfers, UNSCR 2270 prohibitions on opening new representative offices, subsidiaries, branches, or banking accounts in DPRK and on establishing joint ventures, taking ownership interest, or establishing or maintaining correspondent relationships with DPRK banks, and UNSCR 2321 conditional expulsion and repatriation of individuals working on behalf or at a direction of a DPRK bank or financial institution
- Calls upon all MS to redouble their efforts to implement sanctions measures against DPRK
- Authorizes MS to seize and dispose of prohibited items
- Requests SG to provide additional analytical resources to PoE to strengthen its ability to analyze DPRK’s sanctions violation and evasion activities
Procedural
- Requires MS reporting
