EU adds existing prohibitions

June 2016

On 20 and 28 May 2016, the EU added to existing prohibitions by imposing further sanctions against North Korea, including bans on:

  • the import of petroleum products from DPRK, whether or not originating in DPRK;
  • the purchase and transfer of luxury goods from DPRK, whether or not originating in DPRK (excluding travellers’ personal effects or goods of non-commercial nature for travellers’ personal use contained in their luggage); and an expansion of the ban on the supply and transfer of luxury goods to DPRK;
  • the supply, sale or transfer to DPRK of items, materials or equipment relating to dual-use goods or technology, and a ban on any public financial support for trade with DPRK;
  • all investment by DPRK in the EU; investment by EU nationals or entities in the mining, refining and chemical industries as well as in any entities engaged in DPRK's illegal programmes;
  • any aircraft operated by DPRK carriers or originating from DPRK from landing in, taking off or overflying EU territory, with certain exceptions;
  • any vessel owned, operated or crewed by the DPRK from entering EU ports (except where the vessel is returning to its port of origin, for humanitarian reasons, or relating to an emergency or inspection). There remains in place the existing ban on vessels known or believed to be owned or controlled by a designated person or entity; North Korean flagged vessels; and vessels in respect of which there are reasonable grounds to believe there is prohibited cargo on board or the vessel has refused to be inspected.

In addition, all financial transfers to and from DPRK above EUR 15,000 or equivalent will require prior authorisation by the competent national authorities. Authorisation will only be granted if the transfer relates to certain categories, including foodstuffs, healthcare or medical equipment, specific trade contracts not prohibited by sanctions against DPRK, or payments to satisfy claims against North Korea, its nationals, legal persons, entities or bodies.

Financial transfers equal to or below EUR 15,000 do not require special authorisation but must still fall within one of the above-mentioned categories to permit them to be performed. Further, EU banks are required to exercise enhanced due diligence in respect of North Korea transfers.

Additionally, 18 persons and one entity were added to the list of those subject to EU asset freeze.