President Donald Trump met with North Korean leader Kim Jong-un yesterday US Secretary of State Mike Pompeo said last month that American companies will be able to invest in an isolated country if the summit is successful. Who will invest in North Korea?

There are big doubts about whether the terms of the agreement will be honored, but even if the meeting results in a breakthrough, experts say investors should be especially wary of North Korea. And if anyone is moving faster in this direction, it is most likely China.

"Potentially Profitable"

According to the papers, North Korea has some attractive features for foreign companies. It is located in the middle of Asian countries including China, South Korea and Japan.

“There are many potentially profitable and very interesting areas for investment in North Korea”, said Peter Ward, a researcher at Seoul National University who studies North Korea.

North Korea's population is poor but fairly well-educated, and labor costs are much lower than those of its neighbors, according to country experts. Some analysts say it is a potential hub for electronics and textiles.

But these advantages pale in comparison to the many obstacles to foreign investors, especially the brutal Kim regime.

“The prospect of large investments that the regime in North Korea will allow is unlikely,- said Go Myung-hyun, a researcher at the Institute political research asana, analytical center in Seoul. — The regime is deeply suspicious of the international market.”

China will lead

Being the largest trading partner North Korea and the regime's main sponsor, China may take the lead in investing in the country.

Researcher Peter Ward said that North Korea looks like a natural candidate for the Belt and Road Initiative, a grandiose plan to invest hundreds of billions in roads, ports and railways from Asia to Africa. According to experts, the infrastructure in most of North Korea is in a dilapidated state.

“North Korea may be very reluctant to allow China to forcibly take possession of future “troubled assets,” Ward said.

Bad reputation

In the 1980s, Pyongyang defaulted on loans from European and Australian banks. More recently, companies that have tried to work with him have run into problems.

In the late 2000s, the Egyptian conglomerate Orascom was invited to enter into a joint venture with the North Korean government to build the first cellular network.

For several years, the company faced difficulties, including the fact that the transfer of profits from North Korea and Pyongyang was not allowed. In its 2015 financial report, Orascom simply wrote that "control over the activities of the joint venture was lost." Few details have been made public about his fate. Orascom did not respond to a request for comment on this matter.

South Korean companies also struggled. In 1998, the Hyundai Group began operating a mountain resort for tourists in North Korea. The complex attracted 2 million visitors from South Korea for 10 years before a North Korean attendant killed a tourist, prompting the closure of the resort. The project has since been confiscated by Pyongyang.

"They've lost everything. Go Myung-hyun said referring to Hyundai. — The company no longer has access to North Korea.”

Despite this experience, the Hyundai group has set up a task force to prepare for a potential return to the country. And Samsung Securities, the investment arm of another major South Korean conglomerate, said Thursday it is setting up a research team to analyze potential future investment in North Korea.

Prize catch?

The two Koreas also cooperated in Kaesong, a special economic zone where North Korean workers produced goods for South Korean companies. But Ward said many South Korean companies have agreed to operate in the zone on the North Korean side of the border because of guarantees and support from the government in Seoul.

On February 10, 2016, South Korea announced the cessation of work in the Kaesong Industrial Zone after North Korea tested a long-range missile.

Experts offer several reasons why the North Korean regime might scare away foreign investors.

Some say the authorities are concerned that the spread of market capitalism is destroying the power of the regime, or that companies may start a group fight with the government.

Others say North Korea's closed economy means officials don't know exactly what is considered acceptable practice for business partners.

« They think of themselves as winning in international markets, Ward said. — They don't seem to understand that alienating investors willy-nilly lead to a very bad reputation.».

For the 50,000 North Korean workers who worked in Kaesong, the zone's closure was a blow. Although conservative human rights activists have often referred to the Kaesong zone as a "hard labor camp", such claims are patently hypocritical. Wages in Kaesong are really low by the standards of the developed world: average salary there was $150 a month, and more than half of this amount was withdrawn to the state. However, $50-70 is not bad by the standards of North Korea, so the working zones had every reason to believe that they were extremely lucky. Now their luck has run out.

True, there is hope. There are persistent rumors in Kaesong that in the near future the empty enterprises will be transferred to North Korean private entrepreneurs who will try to establish production there using abandoned South Korean equipment.

Although the phrase "North Korean entrepreneur" may seem strange, in reality private business has existed (and even thrived) in the country of Juche for about two decades. There were times when the DPRK was an almost pure example of a total state economy, but those times are in the past. During the crisis and famine of 1996-1999, the state lost both the opportunity and the desire to fight the private economy, which began to grow slowly.

At first, North Korean entrepreneurs were engaged in small business: they traded in the markets, founded handicraft workshops for the production of consumer goods, conducted a smuggling trade with China. Over time, quite large private enterprises began to appear in North Korea. In some cases, private investors began to take over state-owned enterprises that stopped working during the crisis years, in the mid and late 1990s.

North Korean stalls

At the same time, the attitude of the authorities to what was happening remained extremely contradictory. On the one hand, by 2000, private business had become an important element of the economy. It was he who played a big role in the fact that the crisis was eventually overcome, and from about 2002-2003, the DPRK economy began to grow again, although not too fast. On the other hand, the country's leadership under Kim Jong Il perceived private business as something fundamentally wrong or, at best, as a temporary phenomenon that had to be put up with in times of crisis. Under Kim Jong Il, from time to time campaigns against private business were carried out, which, however, ended in nothing.

With the coming to power of Kim Jong-un in December 2011, the situation has changed. For all his temper and eccentricity, the new North Korean ruler has a very positive attitude towards private business, so after 2012 the North Korean authorities on the ground received an unequivocal instruction to no longer interfere in the affairs of private entrepreneurs and merchants if possible.

However, this does not change the fact that, from a formal point of view, private business remains completely illegal. Despite the fact that now in North Korea almost all public catering and retail, a significant part of intercity road transport, as well as a number of small and medium-sized food and light industry enterprises, it is strictly forbidden to mention this in the official press (and there is no other in the country).

Small workshops and stalls do without formalities, while larger private enterprises, such as restaurants, are formally registered as state property. At the same time, a significant part of what is happening at these enterprises, from a formal point of view, is a brazen violation of the law and theft of socialist property, so that not only the prosperity, but also the survival of entrepreneurs depends on the goodwill of local officials, which can be bought, and the current position of the highest guide that is not for sale.

Nevertheless, it was the closure of the Kaesong zone that aroused considerable hopes among entrepreneurs. As a result of the measures taken by Seoul, more than a hundred enterprises with first-class equipment by North Korean standards and well-trained personnel have become ownerless, and now North Korean businesses are actively working to gain access to suddenly appeared opportunities. Of course, the guilds will operate, as always, under a formal roof public institutions. There is no doubt that if he succeeds, the “closed” zone will continue to operate, perhaps with less efficiency than before, but perhaps with greater benefit to most North Koreans.

North Korea is today one of the most totalitarian countries in the world. But it turns out that this closed state has a lot of export items, and very unusual ones.

1. Coal

As everyone knows, China is the world's largest importer of coal. But where does China get millions of tons of this fuel from? It turns out that recently North Korea has become the main supplier of China. Despite an overall drop in the level of Chinese imports, shipments from North Korea increased by 25 percent - in May 2015, the country exported 1.8 million tons of coal to China.

Export natural resources- a fairly simple way for a totalitarian regime to make money without weakening control over the population. Another benefit is that Korea's natural resource exports are not on the UN sanctions list, so the country can make money from coal exports quite legally.

2. Ballistic missiles

North Korea is also known for its provocative ballistic missile launches, which are usually attributed to "evil capitalist machinations." But North Korean ballistic missiles are used not only for this, they are also exported, bringing tens of millions of dollars a year to the DPRK budget. The export of ballistic missiles allows the government to also continue to manufacture missiles for internal use thanks to economies of scale.

3. Arms factories

North Korea is one of the most militarized countries in the world, with an army of more than a million people who, accordingly, need to be armed. North Korea's huge arms industry is another way to earn foreign exchange for a cash-strapped nation. The country not only exports heavy weapons, including rocket launchers and anti-aircraft missile systems, but also offers assistance in the construction arms factories for their clients.

Over the past 30 years, North Korea has taken part in the construction of two Ethiopian weapons factories and the supply of industrial equipment to this country. Given that the factories were developed in North Korea, only North Korea can provide spare parts for industrial equipment, thus forcing Ethiopia to continue to cooperate with them. North Korea has also built military installations in other African countries such as Nigeria and Madagascar.

4. Statues

North Korea has built a colossal number of statues, as they are one of the means of propaganda in the country. Considering North Korea's outstanding experience in creating statues, other countries even began to order sculptural works from her.

For example, Zimbabwe recently paid $5 million to commission two statues of President Robert Mugabe. Also in North Korea, statues were made to order for Angola, Egypt, Equatorial Guinea, Ethiopia and even Germany. North Korea's largest customer is Namibia, which was awarded a $60 million contract in the early 2000s to build a giant war memorial in Windhoek.

5. Restaurants

Restaurants serving "authentic North Korean food" and traditional dances and songs as entertainment can be found throughout Asia. Interestingly, these restaurants are really Korean - in the 1990s, North Korea opened a whole chain of Pyongyang Restaurant restaurants throughout Asia. This made it possible to kill three birds with one stone: making money for the treasury, funding North Korean embassies in countries where restaurants operate, and money laundering. b

6. Textile

The border between China and North Korea is bustling with economic activity. It is believed that about a quarter of all residents of the Chinese province of Dandong do joint business with the North Koreans. One of the examples of such economic activity are textile factories that employ exclusively North Koreans. The products of these factories are then transported across the border, where they are labeled "Made in China". Such a demand for manufacturing products in North Korea is not surprising - after all, this country has one of the cheapest labor forces in the world.

7. Counterfeit US banknotes

North Korea is the undisputed leader in the production of counterfeit banknotes. The US has previously claimed that its $100 banknotes are among the most secure in the world. But that hasn't stopped North Korea, which has bought equipment from Japan, paper from Hong Kong and ink from France. The new counterfeit money turned out to be of such high quality that the US had to introduce a new $100 banknote into circulation in 2013.

8. Labor force

What North Korea has in abundance is people. But how can you monetize this “product”? Before North Koreans go abroad, their families are effectively taken hostage to ensure that the money they earn is transferred back to their homeland, as well as the return of workers home. About 50,000 North Korean workers now work abroad, sending remittances totaling nearly $2 billion a year back home.

9 Methamphetamines

North Korea has been dealing drugs since 1970, ever since the country defaulted on its international debt. Initially, Korea took contracts for the transport of drug shipments with the help of diplomats, using diplomatic immunity. Later, North Korea began producing its own drugs, primarily methamphetamine, which it began to trade through its embassies. North Korean methamphetamine is known for its high purity (99 percent).

This is not surprising, given that drugs are produced on state enterprises under the guidance of professional chemists. However, since the mid-2000s, the purity of Korean drugs has drastically declined, but volumes are still on the rise.

10. Nuclear reactors

Perhaps North Korea's most surprising export was its attempt to build a fully functioning nuclear reactor for Syria, which Israel bombed in 2007. Had the reactor not been bombed, it could have produced enough plutonium to make one or two atomic bombs Every year.

In North Korea, there is also one of those that is worthy of being included in tourist guides.

The North Korean government claims that their country is a real paradise: everyone is happy, secure and confident in the future. But refugees from describe a different reality, a country where they have to live beyond the limits of human capabilities, without a goal and the right to choose. been in crisis for a long time. The publication will present the features of the country.

Characteristic

In economics, there are three distinctive features. First, it represents an order in which resources are distributed centrally. This one is called planned. Secondly, resources are used to counter possible threats that can destroy the integrity of the country. This use is called the mobilization economy. And thirdly, they are guided by the principles of socialism, that is, justice and equality.

From this it turns out that the economy of North Korea is a planned mobilization economy of a socialist country. This state is considered the most closed on the planet, and since the DPRK has not shared economic statistics with other countries since the 60s, one can only guess about what is happening beyond its borders.

The country is distinguished by not the most favorable weather conditions, so there is a shortage of food products. According to experts, the inhabitants are below the poverty line, only in 2000 did hunger cease to be a problem of national scale. As of 2011, North Korea ranks 197th in the world in terms of purchasing power.

Due to militarization and the policies of the national communist state ideology of Kim Il Sung, the economy has been in decline for a long time. Only with the advent of Kim Jong-un, new market reforms began to be introduced and the standard of living increased, but first things first.

Economy of the post-war period

In the second half of the 1920s, Korea began to develop mineral deposits in the north of the country, which caused an increase in the population. This stopped after the end of World War II. Korea was then conditionally divided into two parts: the south went to the United States, and the north was under the rule of the USSR. This division provoked an imbalance of natural and human resources. Thus, a powerful industrial potential was concentrated in the north, and the main part of the labor force was concentrated in the south.

After the formation of the DPRK and the end (1950-1953), the economy of North Korea began to change. It was forbidden to practice entrepreneurial activity, and the card system came into use. It was impossible to trade grain crops in the markets, and the markets themselves were used extremely rarely.

In the 1970s, the authorities began to pursue a policy of economic modernization. New technologies were introduced into heavy industry. The country began to supply minerals and oil to the world market. In 1979, the DPRK was already able to cover its external debts. But in 1980 the country went into default.

Two decades of crisis

The North Korean economy has, in short, been a complete fiasco. Demand for products dropped significantly, and because of the oil crisis, the country was declared bankrupt. In 1986, the external debt to the allied countries amounted to over 3 billion dollars, and by 2000 the debt exceeded 11 billion. The bias of economic development towards heavy industry and military equipment, the isolation of the country and the lack of investment were the factors that hindered economic development.

To remedy the situation, in 1982 it was decided to create a new economy, the basis of which was to be the development Agriculture and infrastructure (especially power plants). After 2 years, a law on collective enterprises was adopted, which helped to attract foreign investment. 1991 was marked by the creation of a special economic zone. Albeit with difficulty, but investments flowed there.

Juche ideology

The Juche ideology had a special influence on the economic development of the state. This is a kind of combination of the concepts of Marxism-Leninism and Maoism. Its main provisions that influenced the economy were as follows:

• revolution is a way to achieve independence;
• to do nothing is to abandon the revolution;
• to protect the state, it is necessary to arm the whole people so that the country turns into a fortress;
• the correct view of the revolution comes from a feeling of boundless devotion to the leader.

In fact, this is what keeps the economy of North Korea. The main part of the resources is directed to the development of the army, and the remaining funds are barely enough to save the citizens from hunger. And in this state, no one will rebel.

Crisis of the 90s

After cold war The USSR stopped supporting North Korea. The country's economy stopped developing and fell into decline. China stopped providing support to Korea, and, combined with natural disasters, this led to the fact that famine began in the country. According to experts, the famine caused the death of 600 thousand people. Another plan to establish a balance failed. Food shortages increased, an energy crisis erupted, resulting in the shutdown of many industrial enterprises.

Economy of the 21st century

When Kim Jong Il came to power, the country's economy "cheered up" a little. The government carried out new market reforms, and increased the amount of Chinese investment ($200 million in 2004). Due to the crisis of the 90s, semi-legal trade became widespread in the DPRK, but no matter how hard the authorities try, even today there are “black markets” and smuggling of goods in the country.

In 2009, an attempt was made to implement financial reform to strengthen the planned economy, but as a result, the country's inflation rate skyrocketed and some basic commodities became scarce.

At the time of 2011, the DPRK balance of payments finally began to show a figure with a plus sign, positive influence foreign trade contributes to the state treasury. So what is the economy like in North Korea today?

Planned Economy

The fact that all resources are at the disposal of the government is called a command economy. North Korea is one of the socialist countries where everything belongs to the state. It solves the issues of production, import and export.

The command-administrative economy of North Korea is designed to regulate the amount of manufactured products and pricing policy. At the same time, the government makes decisions not based on the real needs of the population, but guided by planned indicators, which are presented in statistical reports. There is never an oversupply of goods in the country, since this is inexpedient and economically unprofitable, which the government cannot allow. But very often you can find a shortage of essential goods, in connection with this, illegal markets flourish, and with them corruption.

How is the treasury filled?

North Korea has only recently begun to emerge from the crisis, ¼ of the population is below the poverty line, and there is an acute shortage of food products. And if we compare the economy of North and South Korea, which competes with Japan in the production of humanoid robots, then the former is definitely lagging behind in development. Nevertheless, the state found ways to fill the treasury:

• export of minerals, weapons, textiles, agricultural products, coking coal, equipment, crops;
• oil refining industry;
• established trade relations with China (90% of trade turnover);
• taxation of private business: for each completed transaction, the entrepreneur pays the state 50% of the profit;
• creation of trade zones.

Kaesong - commercial and industrial park

Together with the Republic of Korea, a so-called industrial park was created, where 15 companies are located. More than 50,000 North Koreans work in this zone, their wage almost 2 times higher than in the territory of the native state. The industrial park is beneficial for both parties: exports to South Korea finished products, and the North has a good opportunity to replenish the state treasury.

Dandong City

Relations with China are established in a similar way, only in this case the stronghold of trade is not the industrial zone, but the Chinese city of Dandong, where trade transactions are carried out. Now there are many North Korean trade missions open there. Not only organizations, but also individual representatives can sell goods.

Seafood is in high demand. There is a so-called fish mafia in Dandong: in order to sell seafood, you need to pay a fairly high tax, but even so you get a good profit. There are, of course, daredevils who import seafood illegally, but due to strict sanctions, there are fewer of them every year.

Today, North Korea is dependent on foreign trade, but there are several other interesting points in the country's economy, some of which are inseparable from politics.

Thus, there are 16 labor camps in the country, created on the principle of the Gulag. They perform two roles: punishing criminals and providing free labor. Since the principle of “punishment of three generations” exists in the country, some families spend their whole lives in these camps.

During the period of economic decline, insurance fraud flourished in the country, and at the international level, for which the government was sued more than once demanding the return of insurance payments.

In the late 70s, it was abolished for foreign trade. In this regard, on international market anyone who wished to leave could leave, having previously registered with a special foreign trade firm.

During the crisis, the main currency was food, it could be exchanged for anything.

The economy of North Korea may take the first place in the world in terms of the degree of closeness from the outside world.

There are still many gaps in the country's economy, citizens are trying to migrate at any opportunity, and cards that replace money have not yet gone out of use. It is almost impossible to get into the territory of the state, and all areas visible to tourists can be called exemplary and exemplary territories. The world is at a loss as to what is really going on in North Korea, but the country's economy is on the rise and perhaps in a decade, the DPRK will be on the same level of economic development as its closest neighbors.

Reviews
foreign trade of Russia

Foreign trade of Russia with the DPRK (North Korea) in the 1st half of 2018

Prepared by Foreign Trade of Russia website
based on data from the Federal Customs Service of Russia

Report on Russia's foreign trade with the DPRK (North Korea) in the first half of 2018: trade turnover, exports, imports, structure, goods, dynamics.

Trade between Russia and the DPRK (North Korea)

In the 1st half of 2018, the trade turnover between Russia and the DPRK (North Korea) was $10,985,426, down 82.04% ($50,185,618) compared to the same period in 2017.

Russian exports to the DPRK (North Korea) in the 1st half of 2018 was $10,081,548, down 83.00% ($49,237,201) compared to the same period in 2017.

Imports of Russia from the DPRK (North Korea) in the 1st half of 2018 was $903,878, down 51.20% ($948,417) compared to the same period in 2017.

Trade balance of Russia with the DPRK (North Korea) in the 1st half of 2018 was positive in the amount of USD 9,177,670. Compared to the same period in 2017, the surplus decreased by 84.03% (USD 48,288,784).

The share of the DPRK (North Korea) in foreign trade turnover Russia in the 1st half of 2018 amounted to 0.0033% against 0.0228% in the same period in 2017. According to the share in the Russian trade turnover in the 1st half of 2018, the DPRK (North Korea) took 148th place (in the 1st half of 2017 - 109th place).

The share of the DPRK (North Korea) in Russia's exports in the 1st half of 2018 amounted to 0.0047% against 0.0355% in the same period in 2017. By share in Russian export in the 1st half of 2018, the DPRK (North Korea) took 132nd place (in the 1st half of 2017 - 92nd place).

The share of the DPRK (North Korea) in Russian imports in the 1st half of 2018 amounted to 0.0008% against 0.0018% in the same period in 2017. In terms of the share in Russian imports in the 1st half of 2018, the DPRK (North Korea) ranked 139th (in the 1st half of 2017 - 127th place).

Russian export to the DPRK (North Korea)

In the structure of Russian exports to the DPRK (North Korea) in the 1st half of 2018 (and in the 1st half of 2017), the main share of deliveries fell on the following types of goods:

• Mineral products (TN VED codes 25-27) - 63.27% of Russia's total exports to the DPRK (North Korea) (in the 1st half of 2017 - 86.23%);
• Food products and agricultural raw materials (TN VED codes 01-24) - 28.25% of Russia's total exports to the DPRK (North Korea) (in the 1st half of 2017 - 9.85%);
• Products of the chemical industry (HS codes 28-40) - 6.94% of the total volume of Russian exports to the DPRK (North Korea) (in the 1st half of 2017 - 0.58%);
• Metals and products from them (TN VED codes 72-83) - 1.37% of the total volume of Russian exports to the DPRK (North Korea) (in the 1st half of 2017 - 1.63%);
• Machinery, equipment and vehicles (TN VED codes 84-90) - 0.15% of Russia's total exports to the DPRK (North Korea) (in the 1st half of 2017 - 1.25%).

The largest increase in Russian exports to the DPRK (North Korea) in the 1st half of 2018 compared to the 1st half of 2017 was recorded for the following product groups:

• Pharmaceutical products (TN VED code 30) - an increase of $524,900;
• Fats and oils of animal or vegetable origin and their cleavage products; prepared edible fats; waxes of animal or vegetable origin (HS code 15) - an increase of USD 223,890;
• Oilseeds and fruits; other seeds, fruits and grains; medicinal plants and plants for technical purposes; straw and fodder (TN VED code 12) - an increase of $172,751;
• Ferrous metal products (TN VED code 73) - an increase of USD 116,231.

The largest reduction in Russian exports to the DPRK (North Korea) in the 1st half of 2018 compared to the 1st half of 2017 was recorded for the following commodity groups:

• Mineral fuel, oil and products of their distillation; bituminous substances; mineral waxes (TN VED code 27) - reduction by USD 44,653,533;
• Fish and crustaceans, molluscs and other aquatic invertebrates (HS code 03) - reduction by USD 2,327,000;
• Ferrous metals (TN VED code 72) - reduction by $929,898;
• Products of the flour-grinding industry; malt; starches; inulin; wheat gluten (HS code 11) - a reduction of $780,876;
• Nuclear reactors, boilers, equipment and mechanical devices; their parts​ (HS code 84) - reduction by USD 373,921;
• Means of land transport, except for railway or tram rolling stock, and their parts and accessories (TN VED code 87) - reduction by USD 222,501;
• Wood and products from it; charcoal (TN VED code 44) - a reduction of $199,795;
• Cereals (TN VED code 10) - reduction by USD 158,366;
• Electrical machines and equipment, their parts; sound recording and reproducing equipment, equipment for recording and reproducing television image and sound, their parts and accessories (HS code 85) - reduction by USD 123,644;
• Salt; sulfur; earth and stone; plastering materials, lime and cement (TN VED code 25) - a reduction of $120,984;
• Fertilizers (TN VED code 31) - reduction by USD 94,050;
• Alcoholic and non-alcoholic beverages and vinegar (HS code 22) - reduction by $67,828;
• Rubber, rubber and articles thereof (HS code 40) - reduction by USD 41,620;
• Sugar and sugar confectionery (TN VED code 17) - reduction by USD 31,322.

Russian exports to the DPRK (North Korea) in the 1st half of 2018 by commodity groups

The code TN VED	Product group name	Export in 1st half. 2018, USD	Share in total exports, %	Export in 1st half. 2017 USD	Changes in 1 floor 2018 relatively 1 floor 2017 %
02	Meat and edible meat offal	70	0,00	0	∞
03	Fish and crustaceans, mollusks and other aquatic invertebrates	0	0,00	2 327 000	-100,00
04	Milk products; bird eggs; natural honey; food products animal origin, not elsewhere specified or included	0	0,00	16 440	-100,00
09	Coffee, tea, mate, or Paraguayan tea, and spices	4	0,00	0	∞
10	Cereals	25 432	0,25	183 798	-86,16
11	Products of the flour-grinding industry; malt; starches; inulin; wheat gluten	921 471	9,14	1 702 347	-45,87
12	Oilseeds and fruits; other seeds, fruits and grains; medicinal plants and plants for technical purposes; straw and fodder	183 251	1,82	10 500	1 645,25
15	Fats and oils of animal or vegetable origin and their cleavage products; prepared edible fats; waxes of animal or vegetable origin	1 658 117	16,45	1 434 227	15,61
17	Sugar and sugar confectionery	49 988	0,50	81 310	-38,52
21	Miscellaneous food products	8 928	0,09	17 874	-50,05
22	Alcoholic and non-alcoholic drinks and vinegar	261	0,00	68 089	-99,62
24	Tobacco and industrial tobacco substitutes	131	0,00	0	∞
25		80 592	0,80	201 576	-60,02
27	Mineral fuel, oil and products of their distillation; bituminous substances; mineral waxes	6 298 189	62,47	50 951 722	-87,64
28	Products of inorganic chemistry; inorganic or organic compounds of precious metals, rare earth metals, radioactive elements or isotopes	0	0,00	207	-100,00
29	organic chemical compounds	0	0,00	14 318	-100,00
30	Pharmaceutical products	643 773	6,39	118 873	441,56
31	fertilizers	0	0,00	94 050	-100,00
32	Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other coloring matter; paints and varnishes; putties and other mastics; printing ink, ink, ink	0	0,00	1 322	-100,00
34	Soaps, organic surfactants, detergents, lubricants, artificial and prepared waxes, cleaning or polishing compounds, candles and the like, modeling pastes, plasticine, "dental wax" and plaster-based dental preparations	18 984	0,19	42 055	-54,86
38	Other chemical products	2 438	0,02	10 116	-75,90
39		24 239	0,24	13 036	85,94
40		10 712	0,11	52 332	-79,53
42		0	0,00	202	-100,00
44	Wood and products from it; charcoal	0	0,00	199 795	-100,00
48	Paper and cardboard; articles of paper pulp, paper or paperboard	0	0,00	17 654	-100,00
52	Cotton	0	0,00	540	-100,00
54	Chemical threads; flat and similar threads of chemical textile materials	0	0,00	3 174	-100,00
59		0	0,00	5 728	-100,00
62		2 119	0,02	4 001	-47,04
63		0	0,00	10 993	-100,00
64		0	0,00	3 967	-100,00
65	Hats and their parts	0	0,00	193	-100,00
68		0	0,00	2 549	-100,00
70	Glass and glass products	0	0,00	3 195	-100,00
72	Black metals	21	0,00	929 919	-100,00
73	Ferrous metal products	137 468	1,36	21 237	547,30
74	Copper and products from it	202	0,00	13 132	-98,46
76	Aluminum and products from it	0	0,00	38	-100,00
82		0	0,00	1 024	-100,00
83	Other articles of base metal	0	0,00	2 180	-100,00
84		5 000	0,05	378 921	-98,68
85		0	0,00	123 644	-100,00
86	Railway or tramway locomotives, rolling stock and parts thereof; track equipment and devices for railways or tramways and their parts; mechanical (including electromechanical) signaling equipment of all kinds	0	0,00	7 081	-100,00
87		0	0,00	222 501	-100,00
90		10 158	0,10	8 895	14,20
94	Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name or address or address plates and the like; prefabricated building structures	0	0,00	15 103	-100,00
96	Miscellaneous finished products	0	0,00	1 891	-100,00

Russian imports from the DPRK (North Korea)

In the structure of Russian imports from the DPRK (North Korea) in the 1st half of 2018 (and in the 1st half of 2017), the main share of deliveries fell on the following types of goods:

• Products of the chemical industry (HS codes 28-40) - 19.68% of Russia's total imports from the DPRK (North Korea) (in the 1st half of 2017 - 31.01%);
• Machinery, equipment and vehicles (TN VED codes 84-90) - 14.32% of Russia's total imports from the DPRK (North Korea) (in the 1st half of 2017 - 10.72%);
• Metals and products from them (TN VED codes 72-83) - 0.85% of Russia's total imports from the DPRK (North Korea) (in the 1st half of 2017 - 19.78%);
• Textiles and footwear (HS codes 50-67) - 0.70% of Russia's total imports from the DPRK (North Korea) (in the 1st half of 2017 - 22.39%).

The largest increase in Russian imports from the DPRK (North Korea) in the 1st half of 2018 compared to the 1st half of 2017 was recorded for the following product groups:

• musical instruments; their parts and accessories (TN VED code 92) - an increase of USD 297,685;
• Plastics and articles thereof (HS code 39) - an increase of USD 9,052.

The largest reduction in Russian imports from the DPRK (North Korea) in the 1st half of 2018 compared to the 1st half of 2017 was recorded for the following product groups:

• Articles of clothing and clothing accessories, except knitted or crocheted (TN VED code 62) - reduction by USD 371,554;
• Other chemical products (TN VED code 38) - reduction by USD 358,061;
• Products from ferrous metals (HS code 73) - reduction by USD 189,475;
• Ferrous metals (TN VED code 72) - reduction by USD 164,335;
• Essential oils and resinoids; perfumes, cosmetics or toilet preparations (HS code 33) - a reduction of USD 46,767;
• Articles of clothing and clothing accessories, knitted or crocheted (HS code 61) - reduction by USD 35,059;
• Means of land transport, except for railway or tram rolling stock, and their parts and accessories (TN VED code 87) - reduction by USD 29,679;
• Electrical machines and equipment, their parts; sound recording and reproducing equipment, equipment for recording and reproducing television image and sound, their parts and accessories (HS code 85) - reduction by USD 24,471;
• Nuclear reactors, boilers, equipment and mechanical devices; their parts​ (TN VED code 84) - reduction by USD 12,152;
• Salt; sulfur; earth and stone; plastering materials, lime and cement (TN VED code 25) - a reduction of $8,265;
• Nickel and articles made from it (HS code 75) - reduction by USD 3,676;
• Articles made of stone, plaster, cement, asbestos, mica or similar materials (TN VED code 68) - reduction by USD 3,097;
• Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; their parts and accessories (TN VED code 90) - reduction by USD 2,826.

Imports of Russia from the DPRK (North Korea) in the 1st half of 2018 by commodity groups

The code TN VED	Product group name	Import in 1st floor 2018, USD	Share in total import, %	Import in 1st floor 2017 USD	Changes in 1 floor 2018 relatively 1 floor 2017 %
25	Salt; sulfur; earth and stone; plastering materials, lime and cement	0	0,00	8 265	-100,00
33	Essential oils and resinoids; perfumery, cosmetic or toilet preparations	445	0,05	47 212	-99,06
35	Protein substances; modified starches; adhesives; enzymes	4 200	0,46	4 809	-12,66
37	Photo and film products	0	0,00	62	-100,00
38	Other chemical products	0	0,00	358 061	-100,00
39	Plastics and products made from them	173 048	19,15	163 996	5,52
40	Rubber, rubber and articles thereof	197	0,02	341	-42,23
42	Leather products; saddlery and harness; travel accessories, handbags and similar goods; products from animal intestines (except silkworm fibroin fiber)	426	0,05	183	132,79
55	Chemical fibers	1 527	0,17	0	∞
56	Wadding, felt or felt and non-woven materials; special yarn; twine, cordage, ropes and cables and articles thereof	0	0,00	237	-100,00
59	Textile materials, impregnated, coated or laminated; technical textiles	0	0,00	7	-100,00
60	Knitted or crocheted fabrics	0	0,00	1 613	-100,00
61	Articles of clothing and clothing accessories, knitted or crocheted	4 549	0,50	39 608	-88,51
62	Articles of clothing and clothing accessories, other than knitted or crocheted	0	0,00	371 554	-100,00
63	Other finished textile products; sets; used clothing and textiles; rags	244	0,03	585	-58,29
64	Footwear, gaiters and similar articles; their details	0	0,00	1 207	-100,00
68	Articles of stone, plaster, cement, asbestos, mica or similar materials	0	0,00	3 097	-100,00
69	Ceramic products	49	0,01	310	-84,19
72	Black metals	3 618	0,40	167 953	-97,85
73	Ferrous metal products	4 089	0,45	193 564	-97,89
74	Copper and products from it	0	0,00	70	-100,00
75	Nickel and products from it	0	0,00	3 676	-100,00
82	Tools, utensils, cutlery, spoons and forks of base metal; their parts of base metal	0	0,00	1 033	-100,00
84	Nuclear reactors, boilers, equipment and mechanical devices; their parts	1 348	0,15	13 500	-90,01
85	Electrical machines and equipment, their parts; sound recording and reproducing apparatus, apparatus for recording and reproducing television images and sound, parts and accessories thereof	25 041	2,77	49 512	-49,42
87	Means of land transport, other than railway or tram rolling stock, and their parts and accessories	102 292	11,32	131 971	-22,49
90	Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; their parts and accessories	744	0,08	3 570	-79,16
92	musical instruments; their parts and accessories	581 376	64,32	283 691	104,93
95	Toys, games and sports equipment; their parts and accessories	313	0,03	1 778	-82,40
96	Miscellaneous finished products	372	0,04	830	-55,18

Russian foreign trade statistics
Federal customs Service Russia