Putin and Moon to discuss DPRK cooperation opportunities

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President Moon Jae-in will travel to Russia on Wednesday for talks with President Vladimir Putin, the first state visit to Russia by a Republic of Korea (ROK) president since 1999.

The thaw in relations on the Korean Peninsula could bring fresh opportunities across the region, including for Russia and the ROK. Reuters quoted Russian Deputy Foreign Minister Igor Morgulov as telling reporters that Putin and Moon are likely to discuss joint projects with the Democratic People's Republic of Korea (DPRK) when they meet for a bilateral summit on Friday.

Moon told Russian media on Wednesday that if peace can be established on the Korean Peninsula "an era of South-North economic cooperation will take off in earnest and I believe it must be a three-way cooperation that includes Russia."

Denis Depoux, deputy head of Asia at global consultancy Roland Berger, told CGTN Digital that the thawing of relations on the Korean Peninsula could open the door to significant economic opportunities, particularly in the energy sector.

"North Korea (the DPRK) is an opportunity across multiple dimensions… because that's one of the very few countries that still have legacy companies, monopolies, no competition. And you can duplicate this for pretty much every sector of the economy."

ROK President Moon Jae-in (L) and Russian President Vladimir Putin at the Far East Street Exhibition outside Vladivostok, September 6, 2017. /VCG Photo

Moon told Russian media on Wednesday that new pipelines could be laid from Russia to the ROK, through the DPRK. The ROK imports the vast bulk of its oil and gas, but Russia is only its sixth-biggest supplier, providing just 5.5 percent of its total needs according to AFP.

Putin floated the idea of a new pipeline aimed at exporting gas and expanding trade last year. Russia and the ROK agreed to lay gas pipelines through the DPRK a decade ago, but tensions over the DPRK's nuclear weapons program stalled the project.

Depoux said the gas plan is a "huge opportunity" for Russia, the ROK and the DPRK, and drew parallels between the potential of the DPRK economy and the transformation of eastern Germany after reunification in 1990.

"It opens a lot of opportunities in the energy sector. So oil and gas to South Korea, but also to North Korea, because if we see some opening of the North Korean market – let alone reunification or at least a trend towards reunification – then obviously the same things that we saw 30 years ago in eastern Germany will happen to North Korea."

Investors in China have already taken notice of the potential of the DPRK opening up its economy, with property buyers flocking to the border city of Dandong in recent months.

Moon on Wednesday also talked up the possibility of restoring rail links through the DPRK to allow overland goods traffic from the ROK to Europe, saying it would "bring huge economic benefits to the South and the North as well as Russia."

Yonhap reported that Russian officials have said both Moon and DPRK leader Kim Jong Un have been invited to this year's Eastern Economic Forum in Vladivostok.

Russian President Vladimir Putin (R) and ROK President Moon Jae-in leave after their meeting at the 3rd Eastern Economic Forum outside Vladivostok, September 6, 2017. /VCG Photo

Ties between Russia and the ROK developed slowly after diplomatic relations were established in 1990, but since Moon took office he has looked to Russia as an area of investment and infrastructure cooperation. The thaw in relations on the Korean Peninsula and the freeze in ROK-US military drills, which was welcomed by Russia this week, have further opened the door.

Putin and Moon first met in September when the ROK leader attended the 2017 Eastern Economic, an event at which he addressed his "Nine Bridges" of ROK-Russia cooperation program and spoke of developing trilateral projects with the DPRK in far eastern Russia.

Seoul and Moscow have also explored signing a free trade agreement between the ROK and the Eurasian Economic Union.

Moon is making a three-day state visit that will include a meeting with Russian Prime Minister Dmitry Medvedev. He will also become the first ROK president to deliver a speech to the State Duma, the lower house of the Federal Assembly of Russia.

The ROK president is expected to travel to Russia's southeastern city of Rostov-on-Don on Saturday to watch ROK team's World Cup group-stage match with Mexico.