After the landmark meeting, this is not nuclear, this is the area that will "explode cooperation"

Observers commented that right after the historic meeting between Russian President Vladimir Putin and North Korean leader Kim Jong Un, Russia-North Korea bilateral trade showed signs of growth again after many years of stagnation.

Thượng đỉnh Nga-Triều Tiên: Sau cuộc gặp gỡ bước ngoặt, không phải hạt nhân, đây mới là lĩnh vực sẽ 'bùng nổ hợp tác'

The two leaders of Russia and North Korea during a visit to Russia's Vostochny Space Center. (Source: Reuters)

In his first trip abroad in four years, the North Korean leader traveled to Russia to meet President Putin and attend the Far Eastern Economic Forum. Mr. Kim told the Russian leader that the meeting had brought Russia-North Korea bilateral relations to a new level.

As KCNA commented - a “watershed event” that will help strengthen the strategic relationship between Russia and North Korea, including, of course, economic relations.

Convergence of strategic interests

North Korea is considered to be of particular geopolitical importance to Russia, given its pivotal location in Northeast Asia and its small but strategic shared border.

For many years, trade between Russia and North Korea was affected by international sanctions and North Korean policies. However, recent years have seen a shift in economic dynamics, highlighting North Korea’s evolving international economic strategy and Russia’s pursuit of alternative trading partners in Asia, paving the way for increased bilateral cooperation.

While both countries still maintain cordial relations, the current geopolitical landscape is pushing them to explore deeper strategic and commercial partnerships.

In the face of Western sanctions, both countries are looking to diversify their economic ties. In fact, the results of trade exchanges over the past two years have shown a clear upward trend.

While exact figures are hard to come by, bilateral trade last year was reported to have reached $120 million, marking a significant increase over past years. Of course, when compared to North Korea's trade volume with China, the figure seems much more modest.

However, the trajectory of the development of Russia-North Korea bilateral trade relations is undeniable.

In terms of the structure of bilateral trade, Russia has long exported crude oil, petroleum products, coal, machinery and timber products to North Korea. In return, North Korea mainly exports raw materials and labor (overseas North Korean laborers).

Thousands of North Korean workers, known for their discipline and work ethic, have found work in Russia’s construction and timber industries, which are not only an important source of revenue for Pyongyang but also serve as a diplomatic bridge, further strengthening ties between the two countries.

Meanwhile, Russian companies have shown interest in North Korea's mining sector, especially its huge reserves of rare earth metals.

At the same time, North Korean products, including agricultural products and oriental medicine, have found an increasingly large market in Russia.

Beyond trade, the investment dynamic is growing. Investment between the two countries, while still limited, shows signs of potential growth. Russia’s investment in North Korea’s Special Economic Zones, especially the Rason Economic Zone, is a testament to its long-term vision for the strategic relationship.

These special zones are designed to attract foreign investment, offering lucrative opportunities for Russian businesses, from manufacturing to logistics. Sectors of great interest to both sides include energy, infrastructure and mining.

Russia, with its rich experience in developing infrastructure in challenging terrain, sees North Korea's need to develop railways, roads and ports as a key opportunity.

Meanwhile, on the other hand, North Korea’s infrastructure needs are huge. The country’s need for railways, roads and ports matches Russia’s infrastructure development capabilities. And of course, Russian corporations could not miss this “unique” opportunity, they soon expressed interest in these areas of North Korea, seeing the huge growth potential from here.

Analysts say the story of Russia-North Korea economic ties is closely linked to strategic and political interactions. North Korea’s recent focus on economic modernization and scientific advancement, coupled with Russia’s “Look East” policy, could pave the way for strengthened ties and could herald promising prospects.

North Korea - from Russia's perspective, acts as a counterweight to the growing US influence in the region. Russia has been supporting North Korea's voice in multilateral Asian forums and sees a convergence of strategic interests there.

With North Korea's growing participation in regional multilateral forums and Russia's willingness to engage, even beyond the military or nuclear issue, the coming years could see a stronger strategic and economic partnership between these two historically connected countries.

Resolve challenges, enhance opportunities

Of course, the road to robust bilateral investment is not without its obstacles. International sanctions against North Korea have complicated trading and banking processes, making doing business challenging.

In addition, the lack of detailed, transparent data from North Korea makes it difficult for potential Russian investors to make informed decisions.

However, despite challenges, including sanctions from the US and the West that could hinder rapid progress in cooperation, the foundation for future development and growth has been “sown”.

Currently, Russia and North Korea have the potential for many student exchange programs, cultural interactions and scientific cooperation, as both countries have a rich history of academic and scientific capabilities. Therefore, cooperation in technology and innovation development could be the next “border” to be removed.

Observers say the Russia-Ukraine conflict has become a pivotal event that has served as a catalyst for broader changes in the global order. As Russia reorients its strategies and priorities, its relationship with North Korea has emerged as a silver lining amid the cloud of geopolitical uncertainty.

The growing cooperation between Russia and North Korea reflects a strategic adjustment to the geopolitical realities of Northeast Asia. Both countries are clearly navigating their interests based on current regional and global circumstances. And the fact that North Korea has recently opened six trade offices in Russia speaks volumes.

In addition, in another important relationship, which Pyongyang certainly treasures, Russia has always been a generous provider of humanitarian aid to North Korea, especially during times when the country faced food shortages.

This aid is often in the form of discounted essential goods, mainly energy resources such as coal and oil. There have also been cases of Russia providing debt relief and restructuring to North Korea, also reflecting the economic ties and political closeness between the two countries.

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