This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/world/asia-pacific/6743381.stm

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
Russia helps N Korea fund dispute Russia to help N Korea funds row
(about 5 hours later)
Russia has agreed to help resolve a banking dispute with North Korea, which has blocked a deal over Pyongyang's nuclear programme, US officials say. Russia is to help resolve a banking row with North Korea that is blocking progress on a deal over Pyongyang's nuclear programme, US officials say.
Russia will work with the US to help transfer $25m in North Korean funds, currently frozen in a bank in Macau, a US Treasury official said. Russia is working with the US on how to transfer $25m (£12.7m) in North Korean funds currently frozen in a bank in Macau, a US Treasury official said.
North Korea has insisted it receives the funds before it begins shutting down a key nuclear reactor.North Korea has insisted it receives the funds before it begins shutting down a key nuclear reactor.
The move could help resume six-party talks over the nuclear weapons drive. The move could help restart momentum on the stalled 13 February deal.
The money at Banco Delta Asia was blocked after the US blacklisted the bank, accusing it of money-laundering. Under the agreement, North Korea agreed to shut down and seal its Yongbyon nuclear reactor within 60 days in return for aid.
Although the funds were freed, North Korea had been unable to find a bank to transfer the money. But the deadline came and went as the row over the funds rumbled on.
Moscow has now reportedly agreed to a US request for a private Russian bank to accept the funds. 'Towards critical mass'
"The United States is working with the Russians and the Macanese to facilitate the transfer," US Treasury Department spokeswoman Molly Millerwise said. US Treasury spokeswoman Molly Millerwise confirmed that Washington was working with Russia on how to transfer the funds.
"We appreciate the willingness of the Russian government to facilitate the transaction and the good cooperation of the Macanese authorities," she added. N KOREA NUCLEAR DEAL N Korea to 'shut down and seal' Yongbyon reactor, then disable all nuclear facilitiesIn return, will be given 1m tonnes of heavy fuel oilN Korea to invite IAEA back to monitor dealUnder earlier 2005 deal, N Korea agreed to end nuclear programme and return to non-proliferation treatyN Korea's demand for light water reactor to be discussed at "appropriate time"
The move is part of an agreement between the United States, Russia, North and South Korea, China and Japan, aimed at ending Pyongyang's controversial nuclear weapons programme. "We appreciate the willingness of the Russian government to facilitate this transaction and the good cooperation of the Macanese authorities," she said, but gave no further details.
The money has been frozen in Macau's Banco Delta Asia since 2005, when the US accused it of acting as a conduit for money earned by Pyongyang from illegal activities.
The US blacklisted the bank, but since the February deal has unblocked Pyongyang's funds for transfer. But banks have balked at handling the money.
Russia's Far East Commercial Bank is now seen as a likely conduit, The Wall Street Journal reported on Monday.
South Korean negotiator Chun Yung-woo, in Washington for talks with US counterpart Christopher Hill, said that all parties were committed to resolving the banking dispute.
"I think the energy to get this behind us is moving towards a critical mass," Yonhap news agency quoted him as saying.
North Korea has said in the past that it will begin the process of closing its reactor once it has received its funds.
The latest move comes a week after the North carried out short-range missile tests off its west coast. It carried out a similar test off its east coast at the end of May.
The US described the launches as "not constructive".