N. Korea agrees to discuss projects with Russia, South Korea

Minister for Far East Development: Russian investors required for large scale projects, experts remain skeptical

March 23rd, 2015

North Korea has agreed to discuss trilateral cooperation with Russia and South Korea on creating advanced development zones in the Russian Far East, according to Voice of America (VOA).

Russia’s Minister for Development of the Russian Far East Alexander Galushka told VOA that North Korea made the agreement during a Moscow visit from Trade Minister Ri Ryong Nam in late February.

The minister added that Russian investors might also be necessary.

“As this is a large project, new participants will be required. However, this is the prerogative of the business to attract new members,” Galushka said by email to VOA.

Although Galushka did not give further details on the project, recent reports indicate Russia is looking to cooperate with South Korea on hydroelectric and electricity transmission initiatives in the Russian far-east.

While South Korean companies appear to be downplaying their involvement, Russian company RAO Energy System of East have already commissioned a feasibility study to export power to North Korea’s Rason region.

Russian interest in North Korean infrastructure has been on the up in recent years. The DPRK’s northeastern neighbor bankrolled upgrades to North Korea’s Rajin port and the construction of rail line linking the two countries.

Despite Galushka’s comments, experts remain bullish on how far further trilateral projects will go.

“So far this project seems positive as [one of] Russia’s top official publicly commented about it. It shows that the two nations’ ties are getting stronger,” Lee Seog-ki, a senior researcher at the Korean institute for Industrial Economics & Trade (KIET), told NK News.

“But making a deal is one simple problem, carrying it out is what requires lots of time and effort … Russia’s economy is worse than ever, and the Russian public companies are famous for being not trustworthy. I highly doubt if the Russian company (which is to invest on this project) will full fill their part of the bargain,” Lee added.

Last week Russia and North Korea declared that 2015 would be a “Friendship Year” between the two countries. The move was the latest in a string of high profile visits and reports on proposed cooperation.

Recently released trade figures however tell a different story, with only small scale exports from the DPRK to Russia last year.

Featured Image: Coated with gold by kishjar? on 2013-08-18 20:19:31