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(LEAD) 'Eurasia Initiative' gets boost from Koreas-Russia cooperation

All Headlines 14:16 December 01, 2014

(ATTN: ADDS S. Korean official's background briefing in paras 8-12; ADDS photo)

SEOUL, Dec. 1 (Yonhap) -- The South Korean government vowed full support Monday for the nascent Rajin-Khasan project, saying it would help spur the "Eurasia Initiative" proposed by President Park Geun-hye.

The unification ministry described the logistics program, which is on a test run, as the "starting point" for economic cooperation among the two Koreas and Russia.

"It is meaningful as a project to lay the foundation for realizing the Eurasia Initiative, peace in Northeast Asia and the renovation of our economy," ministry spokesman Lim Byeong-cheol said at a press briefing.

He was referring to South Korea's plan to bring Russian coal through the North's port of Rajin.

In the landmark pilot operation, 40,500 tons of Russian coal arrived in the South on a Chinese-flagged ship over the weekend from Rajin. The coal was transported from the Russian town of Khasan to Rajin on a 54-kilometer railway that was re-connected last year.

South Korea's top steelmaker POSCO began unloading the coal from the ship at its iron mill in Pohang on Monday.

Lim said his government will provide every necessary support for the tripartite project in an effort to achieve the Eurasia Project.

(LEAD) 'Eurasia Initiative' gets boost from Koreas-Russia cooperation - 2

Another ministry official said the South's consortium, also involving Hyundai Merchant Marine Co. and Korail Corp., is expected to ink a formal contract with Russia next year.

It plans to purchase a stake from RasonKonTrans, a joint venture in charge of the Rajin-Khasan scheme, he told reporters on background.

RasonKonTrans was established in 2008 by Russia's RZD Trading House and the port of Rajin, with 70 percent controlled by Russia and 30 percent by North Korea.

The South's consortium is seeking to buy some of Russia's stake.

"If necessary, I think there could be one more round of pilot operation (before signing the deal)," the official said.

Last year, President Park suggested linking energy and logistics infrastructure in the Far East and Europe.

But Seoul is not yet considering any other measure such as the modernization of the North's Rajin port, he added.

lcd@yna.co.kr

leechidong@gmail.com
(END)

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