Russia steps in to try to resolve N.Korea deadlock
WASHINGTON, June 11 (Reuters) Russia has stepped in to try to help with the transfer of funds from a Macau bank to North Korea, said US officials today, who hope an end to the deadlock will quickly revive a stalled disarmament effort.
The issue of roughly 25 million dollar frozen in a Macau-based Banco Delta Asia account has held up implementation of a Feb. 13 disarmament deal with Pyongyang, which has refused to shut down its Yongbyon nuclear complex until it has the money.
But international banks have refused so far to touch the funds or be involved in the transfer for fear that strict US financial laws will taint them.
US officials said Russia had offered its help but declined to provide further details.
''The United States is working with the Russians and the Macanese to facilitate the transfer,'' said US Treasury Department spokeswoman Molly Millerwise.
''We appreciate the willingness of the Russian government to facilitate the transaction and the good cooperation of the Macanese authorities,'' she added.
The Wall Street Journal reported today that a transaction allowing the funds to be transferred to a Russian bank was expected to be completed this week, but Mr Millerwise declined comment on the report as did the State Department.
The Journal said the private Russian Bank likely to receive the funds was the Far East Commercial Bank, where Pyongyang has a dormant account.
There is a banking holiday in Russia both today and tomorrow and the earliest any money could be transferred would likely be on Wednesday.
There has been growing optimism in recent days that a deal could be near over the blocked funds and US Assistant Secretary of State Christopher Mr Hill said he was hopeful.
''I think we will find a solution to this problem of getting them back their money. So, I'm not too worried about this in the long run,'' Mr Hill said in an interview with C-SPAN that aired yesterday.
Hill was set to meet his South Korean counterpart to the six-party talks, Chun Yung-Woo, in Washington later today where the issue of the blocked funds is set to be discussed along with how to proceed once the money is handed over.
''We'd all like to see this behind us so we can get back down to the real business of the six-party talks, denuclearization of the Korean Peninsula,'' said State Department spokesman Sean McCormack.
The six-party talks bring together the two Koreas, Russia, China, Japan and the United States, and Mr McCormack said the United States wanted Pyongyang to follow through on its commitments from the Feb.
13 agreement.
Under that deal, North Korea is slated to get 50,000 tonnes of heavy fuel oil, or its equivalent, once it completes initial steps including shutting down Yongbyon.
During the next phase of the agreement, which includes making a complete declaration of all its nuclear programs and disabling all its nuclear facilities, North Korea will get economic, energy and humanitarian aid up to the equivalent of a further 950,000 tonnes of heavy fuel oil.
REUTERS
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