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Russia Trade Contract with North Korea

Import and export of goods with North Korea — a bilingual EN/RU contract for the bank in 5 minutes. Special UN sanctions regime, settlements in CNY or RUB

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Contract type

Which contract fits working with North Korea

Four contract types — for any deal structure with a North Korean partner

Import of goods from North Korea

Trade with North Korea is restricted by UN Security Council sanctions. Permitted categories: humanitarian goods, food products.

Export declaration (ED) in Russia
UN Security Council permitted categories
Settlements in CNY or RUB
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Export of goods to North Korea

Exports to North Korea are restricted. Permitted: humanitarian cargo, food products, medicines.

Export declaration (ED) in Russia
Screening against UN Security Council sanctions lists
Settlements in CNY via Chinese banks
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Import of services from North Korea

A contract for services permitted under the sanctions regime: construction, IT (subject to restrictions).

No customs clearance for services
Compliance with UN Security Council resolutions is mandatory
Settlements in RUB/CNY
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Export of services to North Korea

A contract for services to North Korea: education, medical care (humanitarian categories).

No customs clearance for services
Revenue repatriation under 173-FZ
0% VAT on service exports
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Good to know

Trade specifics with North Korea

Key terms to reflect in the contract

UN sanctions — mandatory screening

North Korea is subject to multi-layered UN Security Council sanctions (resolutions 1718, 1874, 2087, 2094, and others). Before signing the contract, check the goods against the lists of prohibited categories.

UN sanctions · mandatory

Settlements in CNY or RUB

USD and EUR are unavailable for settlements with North Korea. Chinese yuan (CNY) or Russian ruble (RUB) are used, via banks outside the Western correspondent network.

CNY/RUB · no SWIFT

Russia–North Korea rail route

Direct rail service via the Khasan–Tumangang border crossing. Sea shipments via the port of Rajin (Rason). Container route: Vladivostok → Rason.

Khasan–Tumangang · logistics

173-FZ: repatriation

The revenue repatriation requirement applies. For non-standard settlement arrangements, consult your authorized bank on the applicable accounting procedure.

173-FZ · special regime
FAQ

Questions about trade contracts with North Korea

Answers to the most common questions

No. North Korea has not acceded to CISG. The governing law must be explicitly specified in the contract.
Settlements are made in CNY (via Chinese banks) or RUB (via Russian banks). SWIFT transfers in USD/EUR are unavailable due to sanctions.
Humanitarian cargo, food products, medicines, and goods not explicitly prohibited by UN Security Council resolutions. Check the current list before shipping.
Yes. An export electronic declaration (ED) is mandatory in Russia. Customs clearance on the North Korean side is handled by authorized organizations.
By rail via the Khasan–Tumangang border crossing, or by sea via the ports of Rajin (Rason) or Wonsan. Transit through China is also possible.

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Russia Trade Contract with North Korea: Key Features

North Korea is one of the most challenging trade partners from a sanctions compliance standpoint. Nevertheless, Russia and North Korea continue to develop trade and economic cooperation within permitted limits.

UN sanctions regime

North Korea is subject to multi-layered UN Security Council sanctions. Russian companies must comply with Russian export control legislation and must not violate the UN Security Council resolutions that Russia has joined.

Currency and settlements

SWIFT settlements in USD/EUR with North Korea are unavailable. In practice, companies use: CNY via banks in China, RUB via Russian banks, barter, and clearing arrangements.

Governing law

North Korea has not acceded to CISG. Specify the governing law in the contract: Russian law (Civil Code of the Russian Federation) or Korean law. Arbitration — the ICAC at the Russian Chamber of Commerce and Industry.

Logistics

Direct rail service via Khasan–Tumangang. Sea service via Rason (Special Economic Zone). Vladivostok is the nearest Russian port to North Korea.