CHINA-NORTH KOREA: CHINA STOPS OIL SALES
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Business News quoted Reuters as reporting on June 28, 2017, that the state-owned China National Petroleum Corp (CNPC) has suspended sales of fuel to North Korea over concerns that it might not get paid, as pressure mounts on Pyongyang to rein in its nuclear and missile programmes. It's unclear how long the suspension will last. CNPC and the Ministry of Commerce did not respond to requests for comment. North Korea's embassy in Beijing declined to comment. Chinese foreign ministry spokesman Lu Kang, asked about the sale suspension and whether the Chinese government put pressure on CNPC to make this decision, said: "I do not understand this situation you are talking about" and declined to elaborate. Reuters also said that a source with direct knowledge of the matter had said the CNPC decided to put fuel sales on hold "over the last month or two" and that it is a "commercial decision". He said "It's no longer worth the risks". Meanwhile, Chinese and international banks are stepping up compliance checks on companies dealing with countries on the U.S. sanctions list, such as North Korea.
(Comment: A prolonged cut would threaten critical supplies of fuel and force North Korea to find alternatives to its main supplier of diesel and gasoline, as scrutiny of China's close commercial ties with its increasingly isolated neighbour intensifies.)
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