The imposition of sanctions against the DPRK will not affect the implementation of the railway project “Hasan-Rajin”. This was announced on the sidelines of the World Festival of Youth and Students by the Minister of the Russian Federation for the Development of the Far East, co-chairman of the Russian-North Korean intergovernmental commission Alexander Galushka.
The project to restore the railway from the station Hassan (Russia) to the port of Rajin (DPRK) was implemented in 2008-2014. joint venture between RZD and the DPRK. It was assumed that South Korea was supposed to be the third party in the project, but the minister had previously reported that Seoul was still coordinating the participation in the project.
“Hasan-Rajin” is being realized. It is envisaged that in the sanctions regime it will continue to be implemented. The cargo base reached 2 million tons, which is quite a lot, “the minister said.
According to Galushka, as a whole, the international projects being implemented with the DPRK will continue, but work on the new ones will not start yet. The minister added that in 2014-2015, Russian business, which visited the DPRK with business missions, saw a number of promising niches for cooperation with North Korea, but in terms of sanctions it is premature to talk about further projects.
“Obviously, those sanctions that are currently in force, they are suppressive in relation to the real pragmatic intentions that Russian entrepreneurs have had. Therefore, it is very important that the nuclear-missile problem of the Korean peninsula be solved, and we absolutely understand that in this case we have grounds for literally explosive growth of trade, economic and investment cooperation, “added Galushka.
About the project:
The project to restore the railway from the station Hassan (Russia) to the port of Rajin (DPRK) was implemented in 2008-2014. joint venture of RZD and DPRK, the total amount of investments amounted to 10.6 billion rubles. The terminal in the port of Rajin opened in July 2014, in 2016 it was reported that as a pilot project, Russian coal was transported from Rajin to South Korea by sea. As previously reported by Galushka, in 2017, at least 2.4 million tons of cargo can pass through the Khasan-Rajin site, while this is primarily coal.
The capacity of the Hasan-Rajin site and the terminal is 5 million tons of cargo per year. From the port the goods were sent to South Korea and China. Their recipients via Rajin from the Republic of Korea were companies POSCO, Hyundai Merchant Marine and Korail Corp.
As TASS reported in the framework of the Eastern Economic Forum (WEF) in September, Galushka, the return to the project of South Korean partners is important, because they were originally supposed to become participants in the project, which was designed as a tripartite one.
The minister also said that the Russian side, the company RZD, had invested about 10 billion rubles in the project, and the DPRK fulfilled its obligations.