U.S. sanctions three companies linked to Russian arms deals with North Korea

Aug. 17 (UPI) -- The Biden administration has blacklisted three companies linked to a U.S.-sanctioned arms dealer accused of attempting to facilitate weapons sales between North Korea and Russia, which seeks to use the lethal equipment in its war in Ukraine.

Due to internationally imposed sanctions and its dwindling stockpile of weaponry, the Kremlin has been forced to try and replenish its supplies from the likes of Iran and North Korea.

In late March, the State Department targeted Slovakian arms dealer Ashot Mkrtychev, 57, whom officials said worked with North Korea to obtain more than two dozen kinds of weapons and munitions for Russia in exchange for commercial aircraft, raw materials and commodities in need by the isolated Asian nation.

At the time, National Security Council spokesman John Kirby said they were concerned Pyongyang would provide the Kremlin with further support and that they had information that it was seeking to acquire munitions from North Korea.

On Wednesday, the Treasury blacklisted Kazakhstan-based Defense Engineering Limited Liability Partnership, Russia-based Limited Liability Company Verus and Slovakia-based Versor S.R.O. on accusations that Mkrtychev is the president of Versor, the founder and owner of Verus and the sole director of Defense Engineering.

Officials said he has used Versor to conduct negotiations with companies abroad.

"The United States continues to root out illicit financial networks that seek to channel support from North Korea to Russia's war machine," Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson said in a statement.

The sanctions freeze all property and interest in property of the designated companies and denies U.S. citizens from doing business with them.

"Today's action underscores our commitment to identify, expose and impose severe costs on third-country actors who support Russia's illegal war against Ukraine," State Department spokesman Matthew Miller said in a statement.

"We will also continue to take actions against those attempting to evade our sanctions."