Economic cooperation between Russia and North Korea: New goals and new approaches

Abstract

For many years the Soviet Union was the key economic partner of North Korea. After the USSR broke up, Russia has not played such an important role in the DPRK's economic development. In 2013, its share in the foreign trade of North Korea accounted for a mere 1%. However, in the second decade of the 21st century bilateral, contacts have intensified significantly. Judging by the recent developments, the Russian leadership has made a political decision to expand economic cooperation with North Korea and stimulate Russia's business interests with the DPRK. Russia has set a goal of growing the volume of its trade with North Korea by a factor of ten by 2020. Moreover, Moscow is currently developing a number of investment projects in the DPRK and Russian companies are also looking at developing more of them. Another important aim for Russia is the implementation of big infrastructure projects with both Koreas. The article examines the current position and future prospects for economic cooperation between Russia and North Korea and analyses main forms and potential opportunities for developing bilateral economic relations. Particular attention is paid to the expanding cooperation mechanisms and joint economic projects between Russia and the DPRK and also the potential participation of the Republic of Korea.

Keywords

• Russia
• North Korea
• Trade
• Cooperation
• Projects
• South Korea