Russia’s $10M Oil and Gas Hunt Near North Korea’s Coast

Russia to Fund $10M Offshore Oil and Gas Search Near North Korea’s Waters

Russia has announced plans to fund offshore oil and gas exploration near North Korea's continental shelf. The project, set to receive nearly $10 million in 2026, aims to assess energy reserves in the Sea of Japan. Officials from both countries have already begun preparations, raising questions about compliance with international sanctions.

The agreement between Moscow and Pyongyang took shape in November 2023, when the two nations signed a hydrocarbon exploration deal. Russia's First Deputy Finance Minister, Irina Okladnikova, later confirmed the allocation of 890 million rubles (around $9.7 million) for the project. The focus will be on deep-water areas of the Sea of Japan, where North Korea faces long-standing energy shortages.

The North Korean government has already submitted the required documentation to launch the research, according to Russia's ambassador to Pyongyang, Alexander Matsegora. This follows Russia's resumption of refined petroleum deliveries to North Korea in 2023 and 2024, despite UN restrictions capping imports at 500,000 barrels per year.

Beyond oil and gas, cooperation has extended to mineral exploration. In 2023, the Korea Mining Development Trading Corporation (KOMID) organised a two-week training programme for North Korean geologists. The sessions, supported by Russia's Urangeo and the Russian Academy of Sciences, covered uranium and mineral prospecting techniques.

The joint exploration efforts could deepen energy ties between Russia and North Korea. With nearly $10 million earmarked for 2026, the project may test the limits of existing UN sanctions. Observers will likely monitor how the initiative progresses amid ongoing restrictions on Pyongyang's petroleum imports.