SEOUL: Russian imports of North Korean goods continued to drop into the second quarter of 2015, according to figures from the ITC Trade Map. The latest decrease marks a continuing trend which has seen more than a 10 fold decrease in DPRK exports to Russia since the third quarter of 2010.
Just two years ago in the third quarter of 2013, Russian traders bought goods worth over $3 million from North Korea, as compared to just $328,000 in the second quarter this year.
The drop comes from generally falling imports across a wide variety of DPRK exports, including machinery, vehicles, electrical equipment and furniture. The largest decrease however appears to come from Russian traders no longer showing interest in North Korean made clothes.
Outside of coal and other raw materials, products from North Korea’s textile industry remain one of its more valuable exports. Interest from Russia however has dwindled from around $1 million every three months, to just $5000 between May and July this year.
The news will likely not be welcomed by Russia’s Minister for Far East Development Alexander Galushka who since his appointment has tried hard to promote trade and economic ties between the two countries. Russia’s exports to North Korea continued to zig-zag though generally looked stronger at the end of July this year than over the same period in 2014.
In total, over the last two years North Korean demand of Russian goods has remained relatively stable, though recent increases can be attributed to an upswing in oil product and fuel shipments.
Previous analysis by NK News shows the majority of North Korea’s tanker fleet dedicated to Russian terminals. Despite the tanker capacity in the region, Russia’s reported fuel shipments to the DPRK remain well below their Chinese equivalents.
Over the course of last year Russia and North Korea have put numerous trade initiatives in motion. Traders from the two countries can now transact in Russian Roubles, and a bilateral business council can allocate project managers to oversee larger initiatives. Most recently, the two countries agreed in principle to set up a joint trading house, which will aim to further promote trade turnover between Russia and the DPRK.
