Saturday, 23 September 2017

China limits oil supply to North Korea and bans textile trade



China has moved to limit North Korea's oil supply and will stop buying textiles from the politically isolated nation, it said on Saturday.

 
China is North Korea's most important trading partner, and one of its only sources of hard currency.


The ban on textiles trade will hurt Pyongyang's income, while China's oil exports are the country's main source of petroleum products.


The tougher stance follows North Korea's latest nuclear test this month.


The United Nations agreed fresh sanctions - including the textiles and petroleum restrictions - in response.


A statement from China's commerce ministry said restrictions on refined petroleum products would apply from 1 October, and on liquefied natural gas immediately.


A limited amount, allowed under the UN resolution, would still be exported to North Korea.


The current volume of trade between the two countries - and how much the new limits reduce it by - is not yet clear.


But the ban on textiles - Pyongyang's second-biggest export - is expected to cost the country more than $700m (£530m) a year.


China and Russia had initially opposed a proposal from the United States to completely ban oil exports, but later agreed to the reduced measures.


North Korea has little energy production of its own, but does refine some petroleum products from crude oil it imports - which is not included in the new ban.


The AFP news agency reports that petrol prices in Pyongyang have risen by about 20% in the past two months.


"It was $1.90 yesterday, today it is $2," a petrol station employee told the agency. "I expect the price will go up in the future."




BBC     News.