A Mongolian oil company has withdrawn from a North Korean joint venture due to its DPRK partner’s inclusion in U.S. Treasury sanctions against the country, according to a press release dated January 18.

HBOil had been partnered with the Korea Oil Exploration Corporation (“KOEC”) since 2013, but the company has now decided to end the relationship, following KOEC’s inclusion in Office of Foreign Assets Control (OFAC) designations late last year, a press release said.

“HBOil JSC, a specialty oil recycling and an emerging E&P company, hereby announces its withdrawal from its joint venture in the Democratic People’s Republic of Korea,” the company