N. Korean special economic zone set for revival with rising Russia trade

Satellite imagery suggests spike in activity at Rason port, rail line

Once a North Korean experiment in limited capitalism, the Rason Special Economic Zone appears to be the epicentre of the isolated country's growing cooperation with Russia, experts say, including possible shipments of arms for the war in Ukraine.

With apartment blocks and booming markets flooded with imported goods, the zone, established in the 1990s on the border with China and Russia, was a dream destination for many North Koreans before tighter sanctions hit and pandemic-era border closures choked off nearly all trade and tourism, two experts who study Rason said.

In recent months, there have been clear signs that the area is poised for a comeback, with ships docking there for the first time since 2018, and satellite imagery suggesting a spike in trade from both the port and a rail line to Russia.

Although China - with its vastly larger economy and deeper historical ties with North Korea - might seem the obvious driver of a recovery in Rason, experts say the country's deepening cooperation with Russia may make a more immediate impact.

"Now that North Korea and Russia are becoming very close against the backdrop of the Ukraine war, Russia might send more tourists to North Korea, which can reinvigorate tourism (in Rason)," said North Korea economy expert Jeong Eunlee of South Korea's governmentrun Korea Institute for National Unification.

Russia can also sell coal, oil and flour through Rason, the expert said, and if more North Korean workers are allowed to cross the border, they can send Russian medicine and other goods home for relatives to sell.

The Russian Federal Customs Service said it had "temporarily suspended the publication of foreign trade statistics".