Russia Increases Economic Support For North Korea As China Backs Away

 

Over the past two months, China, North Korea’s economic benefactor and formally the source of 90% of its foreign trade, has been withdrawing financial support, ostensibly under the auspices of US sanctions, as Communist Party leaders try to rein in the North’s nuclear program to appease the US and prevent a potentially destabilizing conflict on its border – a development that would be particularly unwelcome during the Communist Party’s upcoming national congress.

As we reported earlier this week, North Korea’s thriving black-market economy (the county earns hundreds of millions of dollars a year from illegal weapons sales, along with other illicit activities rumored to include counterfeiting of US dollars and the manufacture of methamphetamine) has helped blunt the economic impact of UN sanctions meant to reduce the country’s legitimate exports by 90%. Continue reading