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The new sanctions target China-based Yanbian Silverstar Network Technology Co., its North Korean chief executive Jong Song-hwa, and a Russian-based sister company, Volasys Silver Star, the US Treasury Department said in a statement on Thursday.

Treasury Secretary Steven MnuchinSteven Terner MnuchinBusinesses urge Trump admin. against Postal Service rate hikes Trump admin mulling sanctions on China over Muslim internment camps: report Trump administration weighs sanctions over Chinese hackers: report MORE said in a statement that the penalties "are meant to stop the flow of illicit revenue to North Korea from overseas information technology workers disguising their true identities and hiding behind front companies, aliases, and third-party nationals".

North Korea's official KCNA news agency said US accusations that it was responsible for cyber attacks in 2014 and 2017 were a "smear campaign" and a man sanctioned by Washington earlier this month did not exist. Sanctions were toughened last time on December 22 of the previous year.

"The United States will continue to fully enforce and implement sanctions until we have achieved the final, fully verified denuclearization of North Korea".

The sanctions call for blocking any property or interests of the designated entities and individual within the US Both companies are being sanctioned for their alleged involvement in exporting workers from North Korea.

The UN Security Council has noted that revenue generated from North Korean workers overseas contributes to the country's nuclear weapons and ballistic missile programs. "Period", Haley said in a statement.

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"We're disappointed in the panel for caving to Russian pressure and making changes to what should be an independent report", Haley added, noting that it was a "dangerous precedent".

Russian Federation "obtained the removal of the main part of the paragraphs" concerning it, a diplomat said, speaking anonymously.

The State and Treasury departments would decide on appropriate additional sanctions to recommend and impose, he said. "The full implementation of U.N. Security Council resolutions remains mandatory for all member states - including Russian Federation". The Security Council has to agree by consensus on whether to publish the report and the USA objected to releasing the amended document.

The Russian news agency TASS quoted Russia's U.N. Mission as saying the proposed sanctions were "unjustified".

The U.S. announced new sanctions against North Korea Thursday, targeting two companies in China and Russian Federation and a North Korean individual.

Kim at the summit pledged to work toward denuclearization, although US and other officials have said the North has made little progress to the stated goal.