UN sanctions may lead to liberalization of the North Korean legislation with a view to attract more foreign investment in the DPRK. This was stated in interview to “Interfax”, leading researcher of the Center for Korean studies Institute of Far Eastern studies Eugene Kim.
According to experts, North Korea has never objected to foreign investment. Taking into account the tightening of restrictive measures Pyongyang may abandon the practice of creating joint ventures that are partially owned by the state, and to allow investors to invest in the North Korean economy directly. According to Kim, the main obstacle for foreign companies will remain issues of bureaucratic nature.
Kim also suggested that the UN sanctions will not affect the number of North Koreans working in Russia. At the moment there are about 35 thousand people, mostly in Siberia and the far East
On 5 August the UN Security Council adopted a resolution tightening sanctions against Pyongyang. Now North Korea is prohibited from exporting coal, iron, lead, and seafood. Accounts of the Bank for foreign trade of the DPRK frozen North Korean vessels that violated UN resolutions, denied entry to the ports of all States. The sanctions were a response to the testing of Intercontinental ballistic missiles.
On July 29, the DPRK confirmed the launch of a ballistic missile “And 14”. “The Central Telegraph Agency of Korea” (KCNA) reported that the test did not pose a threat to neighboring countries, however, is “a stern warning for the United States.” July 4, Russia and China issued a joint initiative of proposing to the DPRK to declare a moratorium on nuclear tests and missile launches, and South Korea and the United States to refrain from conducting large-scale military exercises in the region. Washington’s offer was ignored.