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RZD will help the DPRK with the reconstruction of the railway section

The first meeting of the Russia-DPRK Business Council was held in Moscow. It was attended by the Minister of the Russian Federation for the Development of the Far East Alexander Galushka and the Minister of Foreign Economic Affairs of the DPRK Lee Ryong Nam, members of the North Korean delegation, representatives of Russian companies.

Speaking after the meeting in front of reporters, Alexander Galushka said that RZD will help reconstruct North Korea a section of a railway stretching 154 km.

“The North Korean partners raised the issue of expanding cooperation and that they propose to Russian Railways to reconstruct a new section of the railway - the Namyan - On Son - Rajin section. If Hasan - Rajin is 54 km, then this is a section of about 150 km ", - he declared. Nahamyan is on the border with China, so the relevant negotiations, as Alexander Galushka said, will be held with the Chinese side. According to him, in exchange for the reconstruction of the railway, Russian entrepreneurs will have access to deposits in North Korea.

Alexander Galushka noted the first results of the business: within the framework of the RasonConTrans project, in early November, a test delivery of a consignment of Russian coal to South Korea via the Hasan-Rajin railway line and further through the North Korean port of Rajin to the South Korean port of Busan was successfully completed. “The volume of the cargo base for this project is over 1 million tons per year. There are suppliers, there are consumers of this coal in Asian countries, ”said Alexander Galushka.

Another agreement on the development of railways is the commitment of BridgeGroup to complete survey work on the design and construction of a railway track from Pyongyang to Nampo by the end of 2015.

In the field of energy, the parties discussed the progress of work on the feasibility study of the project to organize the supply of electricity to the DPRK, in particular to the Rason trade and economic zone (TEZ) located near the border with Russia. This work was started this year by RAO ES Vostoka. Also, during the event, RusHydro informed its North Korean colleagues about the negotiations scheduled for next week in Seoul on the construction of an energy bridge across the peninsula.

At the meeting of the Business Council, the parties also discussed the supply of GAZ 3309 cars (GAZ Group initiative) to the DPRK, the modernization of the largest in the DPRK metallurgical plant Kim-Chak, work on the formation of the catalog of mineral resources of North Korea and its subsequent presentation.

The Minister of the Russian Federation for the Development of the Far East Alexander Galushka emphasized that a unique mutually beneficial economic model is being created: Russian investments and supplies in exchange for mineral resources of the DPRK. “In our trade and economic relations, we are guided by mutual benefit and an economically rational approach. Accordingly, those models of cooperation that were in the days of the Soviet Union are not considered. "

Let us recall that the visit to Russia of a representative delegation of the DPRK led by Li Ryon Nam, Minister of Foreign Economic Affairs of the DPRK, co-chairman of the Intergovernmental Commission for Trade and Economic, Scientific and Technical Cooperation between Russia and the DPRK, began 24 February. Representatives of North Korea held a number of meetings in Khabarovsk, then arrived in Moscow, as part of the trip they also have to visit Kazan, Lipetsk and Vladivostok.

Alexander Galushka, Minister of the Russian Federation for the Development of the Far East and co-chairman of the Intergovernmental Commission for Trade and Economic, Scientific and Technical Cooperation between Russia and the DPRK, welcoming Lee Ryong Nam, noted a number of constructive achievements in bilateral economic relations over the past six months.

«A number of practical steps have been taken to increase the volume of mutual trade, we are coordinating work to increase it to the level of 1 billion US dollars by 2020, - said Alexander Galushka. - The first settlements in rubles took place. Russian citizens began to receive multiple-entry visas to the DPRK. There is a successful experience of participation of labor teams from the DPRK in the construction of facilities in the regions of the Far East. Negotiations are underway to establish a special body by the government of the DPRK to deal with cooperation within the framework of joint projects with Russia. "

The minister also noted the first results of the business: within the framework of the RasonConTrans project, in early November, a test delivery of a consignment of Russian coal to South Korea via the Hasan-Rajin railway line and then through the North Korean port of Rajin to the South Korean port of Busan was successfully completed. Also, at the beginning of this year, RAO Energy Systems of the East began work on a feasibility study for a project to organize electricity supplies to the DPRK, in particular to the Rason Trade and Economic Zone (TEZ) located near the border with Russia.

Further, Alexander Galushka introduced the recently elected chairman of the Russia-DPRK Business Council, vice-president of the all-Russian public organization Delovaya Rossiya, Vitaly Survillo to his North Korean colleague. The Minister for the Development of the Far East noted the importance of the work of the Business Council in the context of the transition of bilateral relations to the plane of specific business projects: “We had an intense 2014, but, in fact, it was a preparatory one. It is important for us this year to move to the phase of practical implementation of the agreements reached earlier, ”said Alexander Galushka.

The Russia-DPRK Business Council at the Chamber of Commerce and Industry of the Russian Federation was established in early February this year. The creation of the council was supported by the Russian Commerce and Industry Board, the Russian Foreign Ministry, the Russian Embassy in the DPRK and the Russian Ministry of Economic Development. The main tasks of the Business Council are to assist Russian and North Korean entrepreneurs and organizations in finding and establishing business ties in order to effectively develop trade and economic relations between the two countries. The Business Council became the 75th among similar structures at the Russian Chamber of Commerce and Industry for bilateral cooperation with countries of the world. Vitaly Survillo, vice president of the all-Russian public organization Delovaya Rossiya, was elected as the head of the Council.

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