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. NKorea opens bank accounts in Russia to dodge US sanctions: report
TOKYO, Sept 3 (AFP) Sep 03, 2006
North Korea has opened some 10 bank accounts at Russian financial institutions in an effort to secure fund flows now blocked by US financial sanctions, a Japanese newspaper said Sunday.

Senior officials of the reclusive state were transferring their funds through the accounts, the Sankei Shimbun said, quoting several sources close to North Korean matters.

It was part of Pyongyang's efforts to escape pressure from the United States, which has moved to freeze North Korean funds it claims are the profits of drug trafficking, money laundering and other illegal activities, the daily said.

Washington was aware of North Korea's money flows through the Russian banks, the Japanese daily said, adding that it may step up pressure on Russian authorities to abandon such support.

North Korea has warned the United States it will take "all necessary counter-measures" against Washington for ratcheting up the pressure on the communist state through the financial sanctions.

In November, Pyongyang walked out of six-way talks on its nuclear ambitions after Washington accused a Macau-based bank of helping Pyongyang launder earnings from fake US currency, and told US financial institutions to stop dealing with the bank.

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