Top Chinese bank vows to strictly apply UN sanctions on North Korea

Industrial and Commercial Bank of China (ICBC) will strictly implement United Nations’ resolutions on North Korea, an executive of the bank said on Monday.

ICBC vice-president Wang Jingdong said the bank would “strictly implement UN Security Council decisions related to North Korea and carefully fulfil relevant international responsibility”.

Four sources said China’s central bank had told banks to strictly implement United Nations sanctions against North Korea and instructed them to stop providing financial services to new North Korean customers and wind down loans with existing customers.

The United Nations Security Council stepped up sanctions against North Korea earlier this month in response to the country’s sixth and most powerful nuclear test conducted on September 3.

China announced on Saturday that it would impose an immediate ban on textile imports from North Korea and limit oil exports to its neighbour from next year under UN sanctions over its nuclear and missile development.

The Ministry of Commerce also said sales of liquefied natural gas and condensate oil would be banned outright.

Exports of refined petroleum to North Korea would be limited to 2 million barrels per year effective from January 1, the ministry said. China does not disclose details of trade with its isolated neighbour, so it was not immediately clear how big the possible reduction might be.

China accounts for some 90 per cent of North Korea’s trade, making its cooperation critical to any efforts to derail Pyongyang’s development of nuclear weapons and long-range missiles.

Petroleum exports for use in the North’s ballistic missile programme or other activities were banned by UN sanctions, the commerce ministry said.