One of Russia’s largest design and construction companies, NPO Mostovik, is planning to make significant investments in North Korea, PRIME business magazine reported on Tuesday.

Citing quotes from NPO Mostovik’s CEO, Vladimir Shishov, PRIME said that the company would be looking to develop and upgrade railway infrastructure, factories, plants and the processing of natural resources.

“These are two interconnected and quite complex processes. But the NPO has lots of experience in designing, and we will promote our experience and technologies in this region,” Shishov told PRIME.

Shishov also said that North Korea’s economic potential is stifled by infrastructure issues and that without investment in this area “it is impossible to solve the whole range of tasks, connected with the development of North Korea’s economy”.

The statement of intent from NPO Mostovik comes amid a push by both North Korea and Russia to further develop economic ties and coincides with the beginning of an agreement that will see all future inter-bank payments settled in Rubles.

The agreement was signed at the sixth meeting of the Inter-Governmental Committee for Cooperation in Trade, Economy, Science and Technology between the DPRK and Russia in October. The agreement was likely overseen by North Korea’s Foreign Minister Ri Su Yong who was in the country at the time.

The Minister of Development of Far East Russia and the Russian chairman of the Inter-Governmental Committee for Cooperation in Trade, Economy, Science and Technology, Alexandr Galushka, is also currently in North Korea and met Ri on Monday.

Earlier in 2014 Russia also finalized an agreement that wrote off 90 percent of North Korea’s bilateral debt, which amounted to $10.96 billion as of September 2012. The remainder of the debt will be paid off in installments every six months and will also be settled in Rubles.

The two countries have also recently signed a number of protocol agreements to implement mechanisms  that will promote Russian investment in the country.

Featured image: Clay Gilliland

One of Russia’s largest design and construction companies, NPO Mostovik, is planning to make significant investments in North Korea, PRIME business magazine reported on Tuesday. Citing quotes from NPO Mostovik’s CEO, Vladimir Shishov, PRIME said that the company would be looking to develop and upgrade railway infrastructure, factories, plants and the processing of natural resources.