North Korean special economic zone poised for revival in new Russia trade
By Ju-min Park
SEOUL (Reuters) — Once a North Korean experiment in limited capitalism, the Rason Special Economic Zone appears to be the epicentre of the isolated country's growing cooperation with Russia, experts say, including possible shipments of arms for the war in Ukraine.
With apartment blocks and booming markets flooded with imported goods, the Rason SEZ, established in the 1990s on the border with China and Russia, was a dream destination for many North Koreans before tighter sanctions hit and pandemic-era border closings choked off nearly all trade and tourism, two experts who study Rason said.
In recent months, there have been clear signs that the area is poised for a comeback, with ships docking there for the first time since 2018, and satellite imagery suggesting a spike in trade from both the port and a rail line to Russia.
Although China — with its vastly larger economy and deeper historic ties with North Korea — might seem the obvious driver of a recovery in Rason, experts say the country's deepening cooperation with Russia may make a more immediate impact.
«Now that North Korea and Russia are becoming very close against the backdrop of the Ukraine war, Russia might send more tourists to North Korea, which can reinvigorate tourism (in Rason),» said Jeong Eunlee, a North Korea economy expert at South Korea’s government-run Korea Institute for National Unification.
Russia can also sell coal, oil, and flour through Rason, Jeong said, and if more North Korean workers are allowed to cross the border, they can send Russian medicine and other goods home for relatives to sell.
The Russian Federal Customs Service said it had «temporarily suspended the publication of foreign trade statistics».
China accounted for
Read more on investing.com
