United Nations diplomats: Russian Federation and China block U.S. on North Korea oil

U.S. Secretary of State Mike Pompeo meets with United Nations Secretary General Antonio Guterres in New York

Real gross domestic product in North Korea fell by 3.5% previous year, the Bank of Korea said in a statement Friday, the largest decline since 1997 when the country suffered a devastating starvation.

They informed Dutch Ambassador to the U.N. Karel van Oosterom - who chairs the U.N. committee on North Korea sanctions - that they were requesting information on each of the 89 transfers, essentially delaying the "halt" on the illicit transfers that the US wants.

But, Pompeo said, North Korea is "illegally smuggling" in refined petroleum products beyond the quota of 500,000 barrels per year allowed under United Nations sanctions, mainly by ship-to-ship transfers.

On July 12, Haley's office sent evidence to the United Nations committee tasked with sanctions on Pyongyang that showed that North Korea breached United Nations sanctions by surpassing the annual cap for petroleum products, documents obtained by CBS News revealed.

French Ambassador Francois Delattre said both Pompeo and Kang sought to "confirm the unity and firmness of the Security Council in the full implementation of the sanctions".

The Russians and Chinese, who are key suppliers of petroleum products to North Korea, said they needed more time to examine the US allegations, the diplomats said.

US Director of National Intelligence Dan Coats said on Thursday it was technically possible for North Korea to eliminate its nuclear weapons programme within a year, but added that it was not likely to happen.

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US documents sent to the sanctions committee and obtained by The Associated Press cite 89 instances between January 1 and May 30 in which North Korean tankers likely delivered refined products "illicitly procured" via ship-to-ship transfers.

This week, South Korea received exemptions from the Security Council committee monitoring North Korea sanctions for communications lines between the North and South and for some goods for the North including furniture, transport vehicles and a bus.

Coats said it was not a matter of trusting the North Koreans but of ensuring proper verification mechanisms were in place. We didn't block anything - we put it on hold.

Chinese Ambassador Ma Zhaoxu said that "China is committed to denuclearization" and "to peace and stability on the Peninsula".

Mr Pompeo, who held inconclusive talks with North Korea this month, said there was a need to stop other sanctions breaches, including the smuggling of North Korean coal, and to crack down on the presence of North Korean guest workers in some countries.

These actions are all "generating significant revenues for the regime and they must be stopped", he said.

Meanwhile, the U.S. secretary of state expressed his concern that North Korea continues to "illegally smuggle" petroleum products, circumventing the UN-backed sanctions.

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Moscow and Beijing said they need additional time to investigate the USA allegations and put a six-month "hold" on the US request. "She needs to study basics more".

"The problem that we are encountering", Haley said, "is that some of our friends have decided that they want to go around the rules".

"What we need now, though, is we need to continue that", Pompeo said.

Those sanctions banned North Korea's exports of raw commodities while severely restricting supplies of oil - vital for the country's military.

He said: "We abide by all decisions".

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