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North Korea to get $100 million annually for Russian gas transit

17 November 2011 09:03 (UTC +04:00)

Baku - APA-Economics. North Korea will get $100 million annually if it becomes a transit country for Russian gas supplies to South Korea, the Russian president’s envoy to the Far East said on Thursday, APA reports quoting RIA Novosti.

In August, President Dmitry Medvedev said after talks with his North Korean counterpart Kim Jong-il that the parties had reached an agreement to draw up a project to build a gas pipeline to South Korea. The pipeline will cost an estimated $6 billion.

"It [$100 million] would be a huge sum for a country with annual gross product of $10 billion. Moreover, the country would have to make no big effort to get it," Presidential plenipotentiary envoy to the Russian Far East Victor Ishayev said.

Alexander Medvedev, Gazprom deputy board chairman, said the expected volume of Russian gas exports to South Korea was raised to 12 billion cubic meters from 10 bcm.

Supplies of Russian gas to South Korea are expected to be started in 2017. Gazprom currently supplies up to 1.5 million tons of liquefied natural gas to South Korea annually.