Russian tankers fuelled North Korea via transfers at sea, sources say

Russian tankers have supplied fuel to North Korea on at least three occasions in recent months by transferring cargoes at sea, according to two senior western European security sources, providing an economic lifeline to the secretive communist state.

The sales of oil or oil products from Russia, the world's second biggest oil exporter and a veto-wielding member of the United Nations Security Council, breach UN sanctions, the security sources said.

The transfers in October and November indicate that smuggling from Russia to North Korea has evolved to loading cargoes at sea since Reuters reported in September that North Korean ships were sailing directly from Russia to their homeland.

“Russian vessels have made ship-to-ship transfers of petrochemicals to North Korean vessels on several occasions this year in breach of sanctions,” the first security source, who spoke on condition of anonymity, told Reuters.

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A second source, who independently confirmed the existence of the Russian ship-to-ship fuel trade with North Korea, said there was no evidence of Russian state involvement in the latest transfers.

“There is no evidence that this is backed by the Russian state but these Russian vessels are giving a lifeline to the North Koreans,” the second European security source said.

Meanwhile, South Korea seized a Hong Kong-flagged oil tanker accused of transferring 600 tons of refined oil to a North Korean ship in October in violation of UN sanctions, South Korean officials said on Friday. Officials revealed that they had impounded the 11,253-ton tanker, the Lighthouse Winmore, and questioned its crew.

The revelation came a day after US president Donald Trump accused China of letting fuel oil flow into North Korea through illicit ship-to-ship transfers on international waters.

There was no immediate evidence of official Chinese involvement in the Lighthouse Winmore's dealings with the North Koreans. The registered owner of the ship is a Hong Kong company called Win More Shipping. The only director of that company is Gong Ruiqiang, who lives in Guangzhou, China, according to Hong Kong corporate filings. The ship was being leased by a Taiwanese company, South Korean Foreign Ministry officials told reporters on Friday.

Satellite imagery

The two security sources cited naval intelligence and satellite imagery of the vessels operating out of Russian ports on the Pacific but declined to disclose further details to Reuters, saying it was classified.

Russia’s foreign ministry and the Russian customs service both declined to comment when asked on Wednesday if Russian ships had supplied fuel to North Korean vessels. The owner of one ship accused of smuggling oil to North Korea denied any such activity.

North Korea relies on imported fuel to keep its struggling economy functioning. It also requires oil for its intercontinental ballistic missile and nuclear programme that the United States says threatens the peace in Asia.

“The vessels are smuggling Russian fuel from Russian far eastern ports to North Korea,” said the first security source, who spoke on condition of anonymity.

Reuters was unable to independently verify that the vessels had transferred fuel to North Korean vessels, whether the Russian state knew about the sales or how many Russian vessels were involved in the transfers. It was also unclear how much fuel may have been smuggled.

Ship satellite positioning data consulted by Reuters and available on Reuters Eikon shows unusual movements by some of the Russian vessels named by the security sources including switching off the transponders which give a precise location.

The security sources said the Russian-flagged tanker Vityaz was one vessel that had transferred fuel to North Korean vessels.

The Vityaz left the port of Slavyanka near Vladivostok in Russia on October 15th with 1,600 tons of oil, according to Russian port control documents.

Documents submitted by the vessel’s agent to the Russian state port control authority showed its destination as a fishing fleet in the Sea of Japan/East Sea. Shipping data showed the vessel switched off its transponder for a few days as it sailed into open waters.

According to the European security sources, the Vityaz conducted a ship-to-ship transfer with the North Korean Flagged Sam Ma 2 tanker in open seas during October.

Reuters could not independently verify the transfer as ship tracking data showed that the Sam Ma 2 had turned off its transponder from the start of August.

Contact denied

The owner of the Russian vessel denied any contact with North Korean vessels but also said it was unaware that the vessel was fuelling fishing boats.

Yaroslav Guk, deputy director of the tanker's owner, Vladivostok-based Alisa Ltd, said the vessel had no contacts with North Korean vessels.

“Absolutely no, this is very dangerous,” Mr Guk told Reuters by telephone. “It would be complete madness.”

When contacted a second time, Mr Guk said the vessel did not have any contacts with North Korean ships and that he would not answer further questions.

An official at East Coast Ltd, the vessel’s transport agent, declined to comment.

Two other Russian flagged tankers made similar journeys between the middle of October and November, leaving from the ports of Slavyanka and Nakhodka into open seas where they switched off their transponders, shipping data showed.

In September, Reuters reported that at least eight North Korean ships that left Russia loaded with fuel this year headed for their homeland despite declaring other destinations, a ploy that US officials say is often used to undermine sanctions.

– (Reuters, additional reporting: New York Times)