Russia and North Korea sign rail link deal

Under the deal, the two countries will renovate the railline from Russia's border town of Khasan to the North Koreanport of Rajin, where sea cargo to and from South Korea could beunloaded.

North Korean leader Kim Jong-il and Russian PresidentVladimir Putin agreed the outlines of the project during Kim'svisit to Russia in 2001. But talks with North Korea dragged onfor seven years amid periodic breaks in negotiations.

Russian Railways chief Vladimir Yakunin signed the deal inMoscow with North Korean Rail Minister Kim Yong-sam.

"We have been moving towards this moment for 7 years,"Yakunin said in a statement. "I am convinced that the agreementand contract signed today will serve to strengthen the economicties between Russia and DPRK as well as between the DPRK andthe Republic of Korea."

Russian officials say the rail route will provide a rarelink with isolated North Korea, whose economy has been drainedby supporting one of the world's largest standing armies.

Russian Railway officials in Moscow refused to say when the54-km (34-mile) rail line would be ready or give an estimate ofhow much it would cost. A container terminal will be built atRajin by a joint Russian-North Korean venture.

World powers including Russia have been trying to get Kimto abandon his nuclear arms programmes after a 2006 nucleartest.

(Reporting by Guy Faulconbridge, editing by PeterMillership)