North Korea orders crackdown on illegal trade in Russian fuel, Daily NK reports

North Korea's government has issued a mandate to halt all illegal fuel trade originating from Russia and has initiated investigations into officials involved in such schemes, according to an account by the independent news outlet Daily NK. The directive, signed by the Cabinet Secretariat, was dispatched to the provincial people's committee on August 27, 2023.

The document labeled bribery and "non-socialist behavior" as persistent issues that must be eradicated. In North Korea, "non-socialist behavior" signifies actions deemed contrary to state socialist norms, including illicit economic activities, corruption, and private enrichment. The order emerged following a broader meeting of the political bureau of the ninth Central Committee of the Workers' Party of Korea on August 25, 2023.

The document ties the completion of the state plan for the second half of the year to stricter monitoring of official conduct. The information was disseminated to provincial, city, and county party committees, heads of people's committee departments, and secretaries of primary party organizations. The illegal trade of liquefied gas, gasoline, and diesel fuel imported from Russia was highlighted as the most pressing issue.

The Daily NK source disclosed: "Concerns have surfaced that strategic fuel imported from Russia is circumventing the state distribution system and reaching private residences in Pyongyang and other regions or being traded with smugglers under official protection, fetching high prices." "An order mandates the complete elimination of this issue by the second half of this year," the source added.

Provincial and county people's committees, alongside security agencies, were directed to establish joint inspection units, identify and confiscate all fuel that strayed from the state network, and return it to the treasury. Those found culpable for fuel leaks or involvement in its unlawful sale faced severe penalties and asset forfeiture, irrespective of their rank.

Inspection teams have commenced in South Pyongan, targeting oil depots, transportation hubs, and markets where fuel is stored or sold. Local officials are exercising caution due to the risk of exposing past extortion schemes. Residents of the province fear the crackdown may disrupt the local economy. Fuel obtained informally has sustained vehicle movement and bolstered market logistics, suggesting that extensive seizures could significantly impede supplies.

Previously, a Bloomberg Economics analysis revealed that from 2022 to 2025, North Korea received $22 billion from foreign sources, with over $14 billion stemming from cooperation with Russia.