Commodities, Emerging Markets, Frontier Markets, Metals

$25 Billion Russian-Led Railway Project Underway In North Korea

In North Korea, a major Russian-led railway project is underway as Moscow and Pyongyang deepen ties, Japanese business journal the Nikkei Asian Review reported on Thursday.

Russia North Korea Hybrid FlagSo far this year, high-ranking officials from both nations have broadened ties by agreeing on economic cooperation in trade, finance, natural resources, and investment.

The railway project in North Korea is estimated to cost around $25 billion in which around 3,500 kilometers of railway infrastructure will be modernized, the Nikkei Asian Review reports.

The major rail project will be headed up by Russian construction company NPO Mostovik.

Around 7,000 kilometers of North Korean railways are in need of modernization, with around 3,500 kilometers of these railways needing urgent modernization, Russian news agency Itar-Tass reports.

Russia’s public and private sectors will likely provide the bulk of the funding for the rail project, in return for interests in gold, rare-metal, and other mineral resource projects in North Korea, the Nikkei Asian Review reports.

Russia is looking to expand its influence on the Korean Peninsula as it eyes an eventual gas pipeline and rail network that extends to South Korea, the Nikkei Asian Review reports.

Sources: The Nikkei Asian Review, Itar-Tass

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