S.Korea to Import Russian Coal Via N.Korea

South Korea will import 30,000 tons of Russian coal late this month through North Korea's Rajin port.

The deal is part of the Rajin-Hassan logistics partnership project between the three countries and involves a consortium of POSCO, Hyundai Merchant Marine and KORAIL. The project is at the core of President Park Geun-hye's so-called Eurasia Initiative, which aims to open trade routes with the mainland.

According to the Unification Ministry here on Monday, the Russian coal worth W3.6 billion (US$1=W1,096) will be loaded on a ship at Rajin port and transported to Pohang for use in making steel at POSCO.

The steelmaker currently imports around 2 million tons of coal a year from Vladivostok. If the project proves a success, the consortium will acquire half of the 70-percent stake Russia owns in a joint venture with North Korea called RasonConTrans.

South Korea halted trade with North Korea after the sinking of the Navy corvette Cheonan in 2010 and cannot invest directly in a North Korean business.

A government official said, "The import of Russian resources will boost efforts to link the trans-Korean railway and trans-Siberian railway to a line running all the way to Europe."

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