
Last updated: March 9, 2010
Source: Financial Times
By Tom Mitchell in Hong Kong and Pan Kwan Yuk in London
A North Korea desperate for foreign exchange has been generating hard currency by re-exporting British cigarettes, despite renewed efforts by the international community to apply tougher sanctions on the impoverished state.
North Korean and other Asian trading entities started re-exporting State Express 555 cigarettes, manufactured by British American Tobacco,
in February last year, just months before North Korea’s second nuclear test in four years prompted the United Nations to impose tougher sanctions on Pyongyang.
BAT sold the so-called “NK 555s”, made and packaged in Singapore for the North Korean market, to a Singaporean distributor for shipment to Nampo, a port near Pyongyang.
However, at least 15,000 cases worth $6.3m (€4.6m, £4.2m) rebounded out of Nampo to ports in Vietnam and the Philippines, according to documents seen by the Financial Times, to go to other markets where they commanded a higher price.
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