Russia And North Korea To Tighten Business Relations

The Russian Chamber of Commerce has set up recently a special Council for Cooperation with North Korea. The new arrangement is supposed to increase trade between the two nations to $1 billion a year by 2020.

Moscow will allow North Korean firms to set up bank accounts in Russia while in exchange, Russia will gain access to North Korea’s mineral resources. Not surprisingly both countries agreed to trade in rubles.

Also North Korea is to facilitate its visa application process for Russian businessmen. Those Russians who get business visas might be allowed to access the internet and use mobile phones.

As a friendly gesture, Russia cancelled $10 billion of its new friend’s debt. In return Kim Jong Un is considering a trip to Russia. He would like to attend ceremonies marking the 70th anniversary of the end of World War II.

The friendship with North Korea potentially could give a boost to Russia’s plan of extending the trans-Siberian railroad into South Korea.

ETFs: RSX, ERUS