IRIA News

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North Korea has generated up to $14.4 billion through its growing military cooperation with Russia during the Ukraine war, according to a new report by a South Korean research institute.

The estimate, based on research by the Institute for National Security Strategy, highlights how Pyongyang’s expanding role in supporting Moscow could be weakening the impact of international sanctions designed to limit its access to hard currency.

The report suggests that military ties between the two countries have evolved into a significant economic lifeline for North Korea, which has long faced strict financial restrictions.

Between August 2023 and December 2025, North Korea is estimated to have earned between $7.7 billion and $14.4 billion from its cooperation with Russia. The largest share of this revenue comes from arms exports.

Deliveries of artillery, ammunition, and both guided and ballistic missiles are estimated to have generated between $7.05 billion and $13.78 billion, with an average of around $10.4 billion.

In comparison, income from troop deployments is significantly smaller but still notable. North Korea is believed to have earned around $620 million from sending personnel to support Russian operations.

If current trends continue, the report projects that Pyongyang could earn as much as $560 million annually from troop deployments alone.

However, only a fraction of these earnings has been directly verified. Analysts estimate that confirmed compensation amounts to between $580 million and $1.5 billion, representing roughly 4 to 19.6 percent of total projected revenue. Much of the remaining compensation is believed to take non-cash forms that are difficult to track.

Payments Beyond Cash

The report notes that North Korea is likely receiving a significant portion of its compensation through indirect or non-monetary means.

These may include transfers of military technology, technical expertise, specialized components, and industrial materials. Such exchanges are harder to detect through satellite imagery or open-source intelligence, making full verification difficult.

Analysts say this type of arrangement allows both countries to bypass traditional financial monitoring systems while deepening their military cooperation.

“If North Korea fully collects payment for its troop deployments and arms exports, the key economic impact of sanctions, which is the reduction of hard currency earnings, is expected to be undermined,” the report states.

Troop Deployments Expand

North Korea has reportedly deployed troops to Russia multiple times since October 2024, with total personnel exceeding 20,000.

These troops are not primarily engaged in direct combat but instead serve in support roles. Their duties include mine clearance, construction work, and engineering tasks. Some units are stationed near the Russia-Ukraine border, where they assist with logistics and security operations.

North Korean workers have also been linked to Russia’s defense production sector, including the assembly of unmanned systems. Estimates suggest that thousands of North Korean personnel remain stationed in regions such as Kursk, supporting ongoing operations.

Arms Shipments Play Key Role

Beyond manpower, North Korea’s military exports have become a critical component of its cooperation with Russia. Satellite imagery and research findings indicate that Pyongyang has shipped large quantities of weapons and ammunition since 2023.

Reports suggest that tens of thousands of containers, carrying millions of artillery shells, have been delivered to Russia over the past two years.

The report also suggests that North Korea supplied a substantial portion of Russia’s artillery needs, underscoring the scale of its involvement. These shipments include a wide range of munitions, from standard artillery rounds to more advanced missile systems.

Sanctions Under Pressure

The findings raise concerns about the effectiveness of international sanctions imposed on North Korea. Sanctions have long aimed to restrict Pyongyang’s ability to generate foreign currency, particularly through arms sales and overseas labor.

However, the scale and structure of its cooperation with Russia appear to be providing new channels for revenue and resource acquisition. By combining arms exports, troop deployments, and non-cash compensation, North Korea may be mitigating the intended economic pressure of these restrictions.

The report suggests that continued cooperation between Moscow and Pyongyang could further erode the impact of sanctions in the coming years.

Strategic and Economic Implications

Beyond the financial gains, analysts note that North Korea’s partnership with Russia offers broader strategic benefits. Closer ties with Moscow may provide Pyongyang with access to advanced military technologies and operational experience.

At the same time, the relationship helps North Korea reduce its international isolation and strengthen its global standing.

The report concludes that while not all earnings can be fully verified, the scale of cooperation indicates a deepening partnership with significant economic and military implications.

As the war in Ukraine continues, North Korea’s role as a supplier and partner to Russia is likely to remain a key factor shaping both the conflict and the effectiveness of international sanctions.