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Russian Speed Bump on the Road to Pyongyang

Summary

Moscow announced June 9 that Russian President Vladimir Putin would
pay a visit to Pyongyang at the invitation of North Korean leader
Kim Jong Il. The visit, likely to take place just prior to Putin's
participation in the G8 summit in Japan July 21-23, will be the
first for a Russian - or Soviet - leader to North Korea. Through
the visit, Russia is attempting to reinsert itself as a key player
on the Korean Peninsula - and in East Asia. Russia's involvement
provides Pyongyang an opportunity to return to its old game of
playing Moscow against Beijing, threatening to further strain Sino-
Russian relations and potentially undermine inter-Korean
reconciliation.

Analysis

On June 9, Moscow announced that Russian President Vladimir Putin
will visit Pyongyang at the invitation of North Korean leader Kim
Jong Il. Putin's visit will mark the first time a Russian - or
Soviet - leader traveled to the North Korean capital. The
announcement is a late attempt by Moscow to insert itself into the
process of inter-Korean dialogue.

Russia is seeking to edge out China as the main supporter of North
Korea, weakening Beijing's influence in East Asia and asserting its
own. With the North Korean pawn, Moscow would benefit from
increased political leverage with South Korea, Japan and the United
States. Pyongyang, in turn, will capitalize on Russia's newfound
desire for high-level contact, reviving its ability to play Beijing
against Moscow - and potentially weakening the urgency of
Pyongyang's renewed relations with Seoul.
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Putin's visit amounts to a diplomatic coup for North Korea, as
relations between the two countries have been strained for a
decade. Pyongyang will likely interpret the visit as a sign of its
political value to Russia; this is in contrast to North Korea's
relations with China, characterized by Kim Jong Il's recent visit
to Beijing. Putin was sure to one-up Jiang by visiting Pyongyang

Moscow's sudden interest in rebuilding relations with Pyongyang is
motivated in large part by its relations with the United States and
East Asia. With increased influence over North Korea, Russia can
offer to guide or control Pyongyang in return for economic
incentives and investments from Seoul, Tokyo and Washington.

Further, North Korea's missile program provides the rationale for
U.S. plans to alter the Anti-Ballistic Missile Treaty, which Moscow
opposes. By regaining influence in Pyongyang, Moscow increases its
bargaining position with the United States.

To accomplish these objectives, Moscow must limit Beijing's growing
influence in Korean affairs. China has played a major role in
bringing North and South Korea together for their summit. For
Beijing, this weakens U.S. influence on the peninsula and in East
Asia, offering China greater leverage in dealing with Taiwan.
_______________________________________________________________
For more on North Korea, see:
http://www.stratfor.com/asia/countries/northkorea/default.htm?secti
on=2.3

For more on South Korea, see:
http://www.stratfor.com/asia/countries/southkorea/default.htm?secti
on=2.3
__________________________________________________________________

However, competition between Moscow and Beijing has been growing
steadily, with relations taking a noticeable downturn after Putin
succeeded former President Boris Yeltsin.

Moscow's late attempt to rebuild its influence over North Korea
leaves it at a disadvantage to Beijing. While China has maintained
economic and political ties - however limited - Russia effectively
abandoned North Korea after establishing diplomatic ties with the
South in 1991. China is increasing food and material assistance to
the North following Kim Jong Il's visit to Beijing and is fully
supporting South Korea's economic expansions into the North.

For its part, Moscow inked a new friendship treaty with Pyongyang
in February 2000, but avoided any promise of economic assistance.
Since then, it has raised the idea of rebuilding former Soviet-
built industries in the North with the assistance of Japanese
capital.

More recently, Russia has emphasized a reinvigoration of the Tumen
River international development program, which, combined with a
planned Korean-Siberian rail link, would allow direct shipping of
goods between Asia and Europe.

Ultimately Russia needs to prove that it has the economic and
political ability to deliver greater benefit to North Korea than
China can. The competition for Pyongyang's ear may well strain
already unsteady relations between Moscow and Beijing. In
disturbing the flow of inter-Korean negotiations, Russia threatens
again to stir up North Korea, undermining potential economic
support from South Korea, the United States or Japan.

Russia hopes to gain both increased leverage from its relationship
with North Korea and the economic benefits of these programs.
However, both the reconstruction of North Korean industries and the
further development of the Tumen River are not solely in Russia's
hands, but depend instead on Japanese and other international
financial participation.

Russia's belated offer may already be affecting inter-Korean
relations. North Korea's request to delay the summit meeting with
South Korea followed meetings between Pyongyang's ambassador to
Moscow and the Russian foreign minister.

As Moscow attempts to outbid Beijing in inter-Korean affairs,
Pyongyang's dependence on Seoul will appear less urgent. North
Korea will once again be able to play rival "sponsors" Russia and
China off one another to its advantage. The rekindled competition
for influence may also spur differences between pro-Beijing and
pro-Moscow factions in Pyongyang, distracting from a unified policy
in regards to Seoul. In the short term, it is South Korea that
stands to lose.

_______________________________________________________________
For more on Asia, see:
http://www.stratfor.com/asia/default.htm?section=2
_______________________________________________________________

(c) 2000 WNI, Inc.


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