N Korean arms firm sanctioned

N Korea called the US "pirates" for interfering in a shipment to Yemen

The United States has imposed sanctions on a North Korean company for selling Scud missiles to Yemen.

According to the US State Department, extended sanctions will prevent the Changgwang Sinyong Corporation from making purchases from a US munitions list, winning contracts from Washington or exporting to the US for the next three years.

But the sanctions are largely symbolic and are likely to have no effect because the US does not trade in military equipment with North Korea.

Identical existing sanctions against the company, imposed for exports to Iran, would have run out in June 2006.

Shipping row

North Korea's export of 15 Scud missiles to Yemen last year sparked a major diplomatic incident.

A Spanish warship intercepted the last shipment of Scuds bound for Yemen in December last year on US intelligence, but American authorities let the vessel deliver the weapons because there was no violation of international law.

The Yemeni Government said the missiles were intended for purely defensive purposes, but the incident highlighted a loophole in the trading of weapons by global non-proliferation regimes.

The US says it did not impose sanctions on Yemen as the recipient because of the two countries' good relations.