Archive for the ‘Russia’ Category

Russia donates food to DPRK

Thursday, June 19th, 2008

After China and the USA made high-profile food donations to North Korea, the Russians finally joined the game.  Russia’s Foreign Minister claims that by the end of June his country will have sent 3,000 tons of flour to UN World Food Program distributors in North Korea. The first aid deliveries arrived in North Korea by train on June 11.

I am surprised Russia waited so long to get into the game.  Russia has been prodding North Korea to link its Trans-Siberian rail traffic to South Korea, and they want to make sure the Chinese don’t squeeze them out of North Korea’s Raijin Port (which does not freeze in the winter).  Food aid might not have helped these processes along, but waiting so long to jump on the bandwagon can’t have helped. 

In March of this year, the Russians inked a deal to renovate the railway lines between their border and Raijin (the tracks are different gagues).

Read about the aid here: 
Russia to deliver 3,000 tons of flour to North Korea
Novosti
6/9/2008

Russia sends food aid to North Korea
Associated Press
6/19/2008

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Air Koryo and DPRK tourism update

Friday, April 18th, 2008

This morning the International Herald Tribune published an interesting AP story on Air Koryo, North Korea’s state airline.

As has been mentioned before, Air Koryo recently began upgrading its fleet–but guess who will seemingly be on the first flight? 

The airline also has taken delivery of its first new jet in years. South Korea’s Yonhap news agency, quoting diplomatic sources in China, reported Thursday that North Korea’s reclusive leader Kim Jong Il was likely to fly to Vietnam and China on the new plane next week.

Kim is widely believed to shun air travel. His previous trips abroad by luxurious special train were shrouded in secrecy and reports speculating on his destinations beforehand were not always accurate.

And although the economy at large is not doing so well, Air Koryo business is brisk. 

“The golden days are now[.]  They’re busier than ever,” says Nick Bonner of Koryo Tours. (paragraph edited)

In 1998, his Koryo Tours — which despite being similarly named for an ancient Korean dynasty is unrelated to the airline — escorted just 98 tourists to North Korea. The number doubled to 200 in 2006 and last year jumped to a still minuscule 1,100. Some of his customers also get into the country by train, a much longer trip.

Bonner said a roundtrip ticket on Air Koryo between Beijing and Pyongyang costs 2,550 Chinese yuan (US$365; €230) for economy and 4,340 yuan (US$621; €390) for business class.

What are Air Koryo’s most recent routes:

Air Koryo now has just three regularly scheduled international routes. Domestic service is said to be virtually nonexistent.

It flies roundtrip three times a week between Pyongyang and Beijing and twice a week to the northeastern Chinese city of Shenyang, an important source of trade for North Korea.

The other is return service once a week to Vladivostok. A flight to Khabarovsk, another city in the Russian Far East, stopped in 2005. The airline also had flew to Bangkok and Macau in recent years.

About the fleet upgrade: 

Perhaps illustrative of Air Koryo’s improving fortunes, in December it acquired a twin-engine Tu-204-300 jet manufactured by Russia’s OAO Tupolev, adding to its fleet of other Tupolev, Antonov and Ilyushin jets and turboprops.

Tupolev mentions the deal on its Web site, though did not disclose financial terms when asked.

A non-North Korean with intimate knowledge of the airline, who refused to be identified, confirmed the deal, adding North Korean pilots were receiving training in Russia with the craft set to begin operations at the end of April.

Although the article insinuates that economics are largely behind the fleet upgrade, a little nudging by China certainly did not hurt.  China gave Air Koryo a deadline to meet Beijing safety standards.  But despite China’s concern for air safety, Air Koryo still has one of the best records in the business:

Though concerns about safety have been raised — Air Koryo is banned from flying in the European Union — the carrier has apparently had just one major accident, a crash in West Africa in 1983 when the airline was known under a different name.

The plane, an Ilyushin 62 carrying 23 people, was en route to Conakry, the capital of Guinea, on an “international non-scheduled passenger” flight, when it went down in the Fouta Djall mountains, according to the Aviation Safety Network Web site. All aboard perished.

Air Koryo made its first flight to South Korea in August of 2000 to ferry 100 separated family members for temporary reunions with long-lost relatives in the South. The airline has made occasional flights to South Korea for special purposes as relations have warmed in recent years.

The article does not mention the other (minor) mishap in 2006:

On August 15, 2006 aircraft from Air Koryo (Tupolev 154B-2) on an international scheduled passenger flight from Beijing, China (Beijing Capital Airport) to Pyongyang, North Korea (Sunan International Airport) experienced a runway mishap (exited runway) during landing rollout after landing in bad weather at Sunan International Airport. No injuries were reported and damage to plane was minor. (Wikipedia)

Read the full article here:
North Korea’s quirky Air Koryo survives and, increasingly, appears to thrive
International Herald Tribune (AP)
4/18/2008

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North Korean businesses expanding in Russia

Saturday, April 5th, 2008

From the Donga Ilbo:

A black Benz with the red license plate of “087” passed by quickly. 087 is a number used exclusively for the sedans of North Korean diplomats. It was easy to tell that the North Korean embassy located on this street recently purchased the luxurious sedan.

“The North Korean embassy has been full of life since the latter half of 2006 because of the increased number of North Korean workers sent to Russia, diversified businesses and growing efforts to secure energy supplies,“ said North Korean defectors that the Dong-A Ilbo report team met in Moscow.

North Korean workers will construct the next APEC forum venue:

In order to prepare for the APEC, the Primorsky regional government (on the North Korean border) plans to issue work permits to 12,000 North Korean workers in 2008, four times higher than the number of those last year. A foreign national, who has hired North Korean workers, said, “North Korean senior officials are lobbying fiercely in order to increase the quota for laborers. They even arrange free tours of North Korea for Russian government officials.”

North Korea companies revived:

Recently, North Korean companies, such as Daedong River, Neungra, Baekdu and Goonpyo, have established their offices in many parts of Russia.

A 39-year-old North Korean defector who has stayed in Russia for 12 years said, “I believe, out of the 49 Russian provinces, North Korean firms have established their offices in about 30 provinces. Some 90 percent of them are responsible for overseeing North Korean workers.”

Joint ventures between Russia and North Korea, which went into hibernation after the United States froze North Korea’s account at Macau’s Banco Delta Asia in 2005, have recently resumed their activities. “Joint companies, which were active in the early 1990s, such as Dongbang Seafood and Far East Marine Transportation, have resumed their businesses,” said one Korean-Russian residing in Nakhodka.

Wages and Taxes:

“North Korean companies, which are spread across Russia, have been collecting about $400 to 500 from each North Korean worker every month. It is then used as high ranking officials’ business expenses,” said a 46-year-old North Korean defector.

“The discontent of workers is growing because high ranking officials dine out at fancy restaurants and their wives purchase expensive clothes with money earned by them,” added the defector.

(Uncle Sam is the only other government I know of that also taxes the income its citizens earn outside of its territory)

The story also makes a big deal out of the fact that the North Koreans pay huge bribes to do business in Russia, but who doesn’t?

Big players, who deliver a large sum of bribes to Russians, have also recently emerged. A captain of a North Korea freight ship was caught March 12 on site while shipping 100 tons of crude oil without reporting to customs at the Slavyanka shipyard, southern Vladivostok. It was found that the captain gave $45,000 to the president of the crude oil storage company as a kickback.

Read the full sotry here:
N.Korea’s Businesses Thriving in Russia
Donga Ilbo
4/4/2008

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1946 Land Reform and early DPRK state…

Sunday, March 9th, 2008

Dr. Lankov publishes some great information on the relationship between the early DPRK state and the Soviet Union…

[F]rom the very start the land reform program in North Korea was planned by the Soviet military authorities, and Kim Il-sung simply signed the documents, which had been prepared for him by the Russian officers.

This fact is well-known, since Russian papers on the land reform issue were declassified and published in South Korea almost a decade ago.

and… 

[E]ven a cursory look through the available documents clearly indicates: in 1945-1950, the North Korean regime operated under the complete control of the Soviet supervisors. Who drafted the above-mentioned land reform law? The Soviet advisers. Who edited and, after some deliberation, confirmed the North Korean Constitution? Stalin himself. Who arrested all the major opponents of the emerging Communist regime? The Soviet military police. Where were they sent to do their time? To prison camps in Siberia, of course!

The available papers leave no doubt that even the relatively mundane actions of the North Korean government needed approval from Moscow. The Soviet Politburo, the supreme council of the state, approved the agenda of the North Korean rubber-stamping parliament and even “gave permission” to stage a parade in 1948. The much-trumpeted conference of the politicians from the North and South in the spring of 1948 was another Soviet idea, even if the leftist historians now love to depict it as yet another expression of Pyongyang’s will to negotiate based on its alleged national feelings. The most important speeches to be delivered by the North Korean leaders had to be pre-read and approved in the Soviet Embassy.

My favorite story in this regard happened in December 1946, when the first elections for the North were being prepared. On Dec. 16, the Soviet Colonel-General Terentii Shtykov discussed the composition of the North Korean proto-parliament with two other Soviet generals. The generals (no Koreans were present) decided that the Assembly would consist of 231 members. They did not forget to distribute the places among the various parties, decided how many women would become members, and the social composition of the legislature. If we have a look at the actual composition of the Assembly, we can see that these instructions were followed with only minor deviations.

Read the full story here:
Southern Biases About North Korea
Korea Times
Andrei Lankov
3/9/2008

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Russian auto plant KamAZ in DPRK

Thursday, March 6th, 2008

A couple of days ago, we had an interesting exchange in the comments that I want to make sure readers have an opportiunity to see:
———————–

Werner Koidl Says: 
 
In that Asia Times report Dr. Petrov wrote:
“… Last year the Russian auto plant KamAZ opened its first assembly line in North Korea, specializing in the production of medium-size trucks named “Taebaeksan-96″. …”

I would be interested in more details about that KAMAZ truck assembly line in North Korea ! Where ?, joint venture ?, size ?
———————–

Leonid Petrov Says: 
 
Concerning the “Taebaeksan 96″ truck assembling plant, the KamAZ set it up last year (2007 or Juche 96) in the town of Pyeongseong. The terms of this deal with NK were really “friendly” and last year KamAZ was having no or very little profit. The production volume last year was very limited (45 or 48 trucks). However, it’s just the beginning of such cooperation.

There is one technician-representative from KamAZ who manages the assembling process. He stays in Pot’onggang HTL and commutes to Pyeongseong. Many North Korean drivers and technicians seem to be technically ignorant (i.e. not knowing how to change the engine oil, etc.), so they need a new technological culture to be introduced. Russians train them well and the North Koreans are grateful.
———————–

Gag Halfrunt Says:

Now that explains the brochure for the Taebaeksan 96 I’d noticed on the Korean Friendship Association’s exports page. I was wondering how anyone could be making money from sticking badges on KamAZes and trying to sell them on. In any case, the export potential for the Taebaeksan 96 must be close to zero, since anyone outside the DPRK who wants a KamAZ can buy one assembled by KamAZ itself.

Trying to drum up interest in the DPRK as an investment destination, the KFA say, “All business made directly with the government, state-owned companies. No middle agents.” This is amusing, because, on the Pyeonghwa car brochure on the KFA website, they’ve sneakily deleted Pyeonghwa’s own contact details and replaced them with the KFA’s email and web addresses. I think this qualifies them a “middle agent” standing between Pyeonghwa and any potential export customers…
———————–

Werner Koidl Says:
 
The link “brochure for the Taebaeksan 96″ given by Gag Halfrunt seems to indicate that the KamAZ Taebaeksan-96 is assembled in a joint venture with Ryongwang [Ryongbong] Trading Company of North Korea. Ryongwang Trading is also the joint venture partner of Pyeonghwa Motors (Unification Church) to assemble the “Whiparam” in Nampo. And Ryongwang Trading company is also business partner of “Kohas” company from Switzerland. And because of its connections to Ryongwang this Swiss company got in troubles with the US administration.

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Stratgeic alliances in North East Asia: Railways, ports, and energy

Tuesday, March 4th, 2008

Writing in today’s Asia Times, Dr. Leonid Petrov analyses the complexity of Russia, Rok, DPRK, and Chinese relations:

Russia and North Korea:

Territorial claims, in one form or another, involve almost all countries adjacent in this region with the exception of Russia and Korea. The Joint Russian Federation-DPRK Commission for the Demarcation of State Borders has recently completed its work by documenting and marking the 17-kilometer frontier. This strip of uninhabited and swampy land in the mouth of the Tumannaya (Tuman-gang) River plays an exceptionally important geopolitical role. It not only provides the two countries with land access to each other, but also prevents Chinese access to the East Sea (Sea of Japan).

China and North Korea: 

Here, some 50km north of the small port that forms the core of North’s Rajin-Seonbong Special Economic Zone, the interests of Russia and China are now at stake. Russia is rapidly repairing the railroad track, and China (in a similarly speedy manner) is constructing a new automobile highway, both leading from their respective borders to the port of Rajin. Russia, investing at least 1.75 billion rubles (US$72 million) into this project, seeks to strongly connect Rajin (and the rest of northern Korea) to its Trans-Siberian Railroad. China, in turn, hopes to divert the growing cargo traffic to its own territory, offering the efficient network of railroads for delivery of South Korean and Japanese goods to Central Asian and European markets. What position will the government of North Korea take in this clash of ambitions?

Russia and South Korea (energy and trade):

In 2007, the volume of the export of “black gold” from Russia to South Korea reached 38.13 million barrels (2.7 times more than in the previous year). The relative proximity of the Russian oil and gas fields is an attractive factor for Korean companies who actively search for alternatives to Middle East oil suppliers. This year South Korea will for the first time start importing natural gas from Russia. The expected volume of delivery during 2008 is 1.5 million tons (or 5.1% of South Korea’s annual demand).

and

Trade relations between Russia and Korea are steadily growing. According to customs statistics, last year Russia recorded the sharpest increase of South Korean imports (56.2% more than in 2006). Due to the inflow of “petro-dollars” the new class of nouveaux riches in Russia began actively buying Korean automobiles, cell phones, television sets and LCD monitors. South Korea exported to Russia goods worth US$8.1 billion (including $3.296 billion of automobiles, $859 million of mobile phone equipment, motor vehicles and spare parts worth $659 million). As for trade with North Korea, in 2006 Russia occupied third place after China and South Korea and absorbed 9% of the total $3.18 billion spent by the North on imports.

More on Russia/South Korea energy talk here. 

The whole article deserves reading here:
Russia lays new tracks in Korean ties
Asia Times
Leonid Petrov
3/5/2008

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Russian ship makes it home

Thursday, February 28th, 2008

UPDATE: Dr. Petrov made some interesting comments that deserve highlighting:

The BBC report is full of mistakes. The name of the ship was “Lidia Demesh”. On board were 23 members of crew and 1 passenger. After being arrested the ship was escorted to the port of Kimchaek.

The situation was resolved quickly thanks to the Russian Consular General, E.Val’kovich, who personally went to Kimchaek and sorted things out. Most Russian diplomats posted to DPRK are fluent in Korean and exempt from travel restrictions. So, no traditional Hawaiian symbol of respect is needed. 

ORIGINAL POST: The BBC reported last week that the North Koreans pulled a surprise ‘Pueblo’ on the Russians.

The Lida Demesh, carrying a consignment of cars from Japan, was heading for the Russian port of Vladivostok when it was stopped by patrol near Cape Musudan.

An armed group boarded the ship and ordered the captain to change course and go to a North Korean port [Chongjin],” he told the Russian NTV network.

Mr Yeroshkin said the centre had been told the ship’s 25 crew-members were fine and that there had been no threat to their lives. (BBC)

Strangely, this was not the first time this has happened… 

A similar incident in 2005 took 15 days to resolve through diplomatic channels. (BBC)

Fortunately for the crew, the situation did not last that long.

A Russian cargo ship released by North Korean authorities on Wednesday has arrived in the Far East port of Vladivostok.

Captain Yury Buzanov said on returning to Russia that he was forced to enter North Korean waters to avoid a shipwreck due to a heavy storm.

“To save the crew I decided to enter North Korean waters because the waves in the Sea of Japan were three to four meters high with winds of 25 meters per second. In such stormy conditions, the cargo could have shifted in an instant causing the ship to lurch and sink,” the captain said. (Novosti)

No word if they ever used the traditional Hawaiian symbol of respect.

The full stories can be found here:
North Korea Detains Russian Ships
BBC
2/23/2008

Russian ship arrives home after seizure by North Korea
Novosti
2/28/2008

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DPRK economic statistics from KEI (BoK data)

Saturday, February 2nd, 2008

In October, the Korea Economic Institute published a presentation of North Korean economic data assembled by the Bank of Korea.  Basic stats below:

  • GDP: -1.1% in 2006 (+3.8% in 2005)-Due to decrease in agriculture output. 
  • Services are the largest component of the economy (34%)
  • Trade volume (exports + imports) approximately US$3 billion
  • 2005 trading partners in order: China, South Korea, Thailand, Russia, Japan, Singapore

See the full report here: northkorea.ppt

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Air Koryo fleet expanding

Sunday, January 27th, 2008

TU-204-300 touches down at a North Korean airport
(Hat tip to Mateusz)
12/28/2007

A TU-204-300 has touched down at a North Korean airport in what became Russia’s first successful deal to supply its most advanced long-range jet abroad. With its 500-8500 flying range, the plane is capable of swiftly transforming its fuselage on the ground. The plane has already been making shuttle non-stop flights inside and outside Russia. North Korean flag Carrier Air Koryo has ordered the TU-204-300.

TU-204-300 with PS-90A engines is a mid-range passenger a/c is intended to carry passengers, luggage and cargo on domestic and international trunk routes of 500 to 8500 km distance . The airliner was built on the basis of TU-204-100 a/c and represents the continuation of TU-204/214 a/c family. TU-204-300 a/c performed its maiden flight 18 August, 2003. The aircraft is produced in series at “:Aviastar-SP” Closed Stock Company in Ulianovsk. Opposite to TU-204-100 the TU-204-300 a/c has a shortened fuselage (by 6 m) and increased fuel reserve. Set of equipment was updated. Improved comfort level of the cabin helps the passengers to withstand long flights. Maximal payload is cut down to 18000 kg at increased flight range.

Click here to get specs on all the planes in Air Koryo’s fleet (h/t DPRK Studies)

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Balancing Between 2 Communist Powers

Sunday, December 9th, 2007

Korea Times
Andrei Lankov
12/9/2007

By 1963, the inhabitants of the huge Soviet Embassy compound in downtown Pyongyang felt themselves under siege. All their communications with Koreans were supervised, and most North Koreans who had expressed some sympathy with Moscow had disappeared without a trace. Soviet aid nearly stopped, and most Soviet advisors left the North. On quite a few occasions, the official media of North Korea and Soviet Russia exchanged broadsides of sharply worded critical statements.

In short, in 1963-65 few people doubted that North Korea, together with Albania and, to a lesser extent, North Vietnam, chose to side with Beijing in its quarrel with Moscow. There were good reasons for this: Moscow was too liberal in its domestic policies, too disdainful of Kim Il-sung’s personality cult, too ready to compromise with the arch-villain of U.S. imperialism. And it was prone to an arrogant attitude in its dealings with the small East Asian country, too.

But then things changed, dramatically and irreversibly. The anti-Soviet pro-Maoist block, clearly in the making in the early 1960s, felt apart in 1966-67. The reason was the Cultural Revolution, the ten years of madness, which engulfed China. Some people believe that there was a system in this madness. Perhaps. But I personally find this system extremely difficult to discover.

It was not the only “cultural revolution,” of course. The Vietnam War demonstrated that China, despite its bellicose rhetoric, was unable to provide enough aid. The Russians provided Hanoi with missiles and tanks while the Chinese largely limited themselves to shipping the “little red books” full of Mao’s quotations.

But it was the “cultural revolution” that played the major role in the alienation between Korea and China. Kim Il-sung was perplexed by the new developments in his sponsor country. Everything looked like madness, and in September 1966 the Cuban Ambassador noticed that North Korean top officials began to make jokes about China and Mao the Great Helmsman himself (they suggested that a bit of Korean ginseng would help the Chinese leader who was obviously becoming senile).

Around the same time, in late 1966, the internal propaganda of North Korea began to criticize “dogmatism” and “superpower chauvinism,” clearly associated with China. For years, the major culprit in the internal propaganda was the “modern revisionism” (read: the Soviet Union). In December 1966, at a secret meeting with the Soviet leader Brezhnev, Kim Il-sung described the “cultural revolution” as a “massive idiocy.” Well, he was probably correct, even if his own policies were not exactly an embodiment of wise statesmanship.

At that stage, China still could play down the differences and probably keep North Korea on its side. But it seems that Beijing was not in control of the situation, or was not able to make reasonable decisions, so in early 1967 the Chinese press began to attack Kim Il-sung. Throughout 1967, the Red Guards newspapers frequently called Kim Il-sung a “revisionist,” the worst term of abuse in their (quite limited) vocabulary. He was accused of “blocking the revolutionary will of masses” and not starting a cultural revolution in his realm.

In early 1967, the Red Guards’ media reported an alleged attempted coup in Pyongyang. As far as we know, the story was a complete fake, but it prompted the North Korean press to react. In January 1967, Nodong Sinmun rebuffed the statements.

The propaganda war escalated. It was meaningless from the Chinese point of view: in its feud with the USSR China needed as many allies as possible. But it seems that the considerations of real politick were rejected by the zealots who required a complete adherence to the then current Chinese political line. Kim Il-sung and his entourage were not famous for their readiness to follow foreigners’ advice, so the situation went from bad to worse.

Bernd Schaefer penned a wonderful monograph based on the now de-classified East German archives, and noted some rather extreme episodes in the late 1960s. In the summer of 1968 the Chinese installed loudspeakers on the border and used them to blast North Korea with Chinese propaganda, largely with tales about the unparalleled wisdom of Mao. The Koreans retaliated in kind, by installing their own loudspeakers and bombarding their opponents with stories of Kim Il-sung’s greatness and superhuman wisdom.

The Chinese accused Kim Il-sung himself of enjoying a luxurious life, very different from the lifestyle of his subjects. This was correct, even if the same thing could be said about Mao. However, these personal accusations made Kim even less willing to accommodate the Chinese.

On one occasion, a group of Chinese soldiers crossed the border, obviously in hope of provoking a clash, but the North Koreans did not react and Chinese soon withdrew. There were also reports that bodies of ethnic Korean officials who were slaughtered in China by the Red Guards were put on a train and sent to the North. Personally, I am somewhat skeptical, but this story was indeed reported in the contemporary diplomatic messages cited by Bernd Schaefer and thus might be true.

Relations reached their nadir in late 1968. However, Kim Il-sung understood that his best policy would be a balancing act between the two Communist great powers, and he was ready to find a path to rapprochement. Fortunately for him, China was gradually coming to some semblance of normality, so from around 1970 it was once again possible to resume the balancing act policy. But that is another story.

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