North Korean-Russian Trade Appears to Rebound

"SEOUL -- Trade at the main railroad crossing between Russia and North Korea has rebounded in recent months to prepandemic levels, as the sanctions on Russia leads to deepening economic ties between the two countries.

Satellite imagery of railroad traffic at the Tumangang-Khasan crossing shows increased transfers of coal, oil and other goods, according to a new report by the Center for Strategic and International Studies, a think tank based in Washington, D.C.

"The uptick in railway traffic is not a coincidence," said Victor Cha, senior vice president for Asia and Korea chair at CSIS, who co-wrote the report. "North Korea is trying to take advantage of the fact that Russia needs help with the sanctions on Russia."

The railroad crossing identified in the report is the same one U.S. officials say North Korea used in November to ship infantry rockets and missiles to Wagner Group, the Russian paramilitary force. In January, Washington released satellite images U.S. officials said showed the arms transfers. North Korea will likely continue to supply Russia's military effort in Ukraine, said National Security Council spokesman John Kirby. North Korea and Russia have denied the arms transaction.

The sanctions on Russia has handed North Korea an opportunity to improve ties with Russia, as the pandemic and own sanctions have further increased its isolation and put a strain on its weak economy. Pyongyang can get foreign currency and fuel shipments from Moscow, as well as a lenient attitude toward the enforcement of United Nations sanctions, said Naoko Aoki, an associate political scientist at Rand Corp., a think tank based in California. That is particularly important as North Korea seeks to procure technology needed for its nuclear and missile programs, she said.

"North Korea benefits from this type of global instability," Ms. Aoki said.

The deepening trade ties with Russia serve to support North Korea as the country is making advances in its weaponry. North Korea carried out a record number of missile tests last year, and leader Kim Jong Un vowed in December to expand his nuclear arsenal exponentially.

Most of North Korea's trade historically has been with China, but Russia has been an important partner, particularly when it comes to oil. Trade between North Korea and Russia amounted to about $48 million in 2019, with petroleum products accounting for the largest portion of North Korea's imports, according to the International Trade Centre. Trade between the countries dropped to about $43 million in 2020 and plummeted to near zero in 2021, according to Russian customs data, as North Korea shut its borders during the pandemic.

Recent satellite images show railcars carrying petroleum on the North Korean side of the border and cars carrying ore on the Russian side of the border, according to the CSIS report. The petroleum cars can be identified because of their long cylindrical tanks; the ore cars are rectangular with open tops. Other cars were closed, concealing their contents.

Moscow didn't respond to a request to comment." [1]

1.  World News: North Korean-Russian Trade Appears to Rebound
Yoon, Dasl.  Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 18 Feb 2023: A.7.