Estimating Russian Government Earnings from Trade with North Korea

While the exact monetary figures are not readily available, it is clear that the Russian leadership has made a strategic decision to foster economic ties with North Korea. The goal is to boost trade volumes and stimulate business interests in the Democratic People's Republic of Korea (DPRK). This initiative aligns with broader geopolitical strategies, including the development of infrastructure projects and investment opportunities.

Objective of Economic Cooperation

One of the primary objectives of Russian foreign policy is to significantly expand the volume of trade with North Korea. By 2020, the Russian administration aims to increase trade turnover by a factor of ten. This ambitious target reflects a comprehensive approach to deepen economic relations and secure more favorable terms in future trade deals.

Current Trade Numbers and Future Prospects

Despite the growing momentum, the current trade turnover between Russia and North Korea remains remarkably low. According to the latest data, the total trade volume for the previous year stood at approximately $34.4 million. In comparison, the Russian government reaps substantially higher earnings from trade with the United States, notably through the state-owned concern RosAtom, which exports uranium to the US.

Investment Projects and Infrastructure Development

Beyond trade, Russia is actively involved in various investment projects within the DPRK. These initiatives include infrastructure development aimed at enhancing both Koreas. By investing in these areas, Russia seeks not only to boost its commercial interests but also to create opportunities for Russian companies to expand their operations in the region.

Potential for Growth and Analysis

Even with the current limited trade figures, the potential for growth is significant. The reasons behind this can be attributed to a combination of geopolitical stability, favorable economic policies, and strategic investments. Additionally, the development of critical infrastructure, such as railroads, ports, and energy projects, is crucial in facilitating smoother trade flows and increasing the overall value of transactions.

Conclusion

While precise figures for Russian government earnings from trade with North Korea are hard to pin down, it is evident that the country is actively working towards boosting these figures. The focus on infrastructure development and investment projects underscores the long-term vision and commitment of the Russian government to strengthen economic ties with the DPRK. As trade continues to grow, it is poised to make a significant impact on both economies.