A Russian company has joined forces with a North Korean partner to build a plastics manufacturing plant in Vladivostok, despite U.N. sanctions that prohibit joint ventures with DPRK entities.

The Moscow-based Golden Autumn Agroholding is in charge of the factory’s construction in the Far East city, according to the social media account of Vladimir Sokolov, the head of the firm’s parent company Black Horse.

Sokolov identified the North Korean partner as “Phurunsan,” likely referring to the Phurunsan Plastics Joint Venture Company, noting that the initiative is the first in a series of bilateral manufacturing projects in the region.

As of late February, work on the factory’s main structure has been completed, with interior work underway, according to Sokolov. He stated that the plant is tentatively scheduled to start production in April.

The factory is set to produce various packaging materials, such as polyethylene bags for garbage and food packaging, disposable tableware and containers. The facility will give special focus to biodegradable plastic “in line with modern environmental responsibility trends,” Sokolov said.

Footage posted by Vladimir Sokolov showing the exterior of the new factory | Image: Vladimir Sokolov’s social media

NK News traced the factory’s location to a northern Vladivostok neighborhood next to the construction site of an apartment complex. Satellite imagery shows that work on the facility began last year, with a concrete foundation for the main building and an adjacent cement pad appearing in June and July.

Construction picked up speed by September, when workers erected the first metal frames at the site, followed by the construction of a small service building on the cement pad in October.

A red roof was installed late December on the main factory building, which measures about 7,104 square feet, according to satellite imagery.

The participation of a North Korean company in the business likely violates U.N. Security Council Resolution 2375, which prohibits member states from creating joint cooperative entities with DPRK firms on a commercial basis.

Little is known about the DPRK’s Phurunsan Plastics Joint Venture Company, which has been briefly shown on state TV and participated in recent international trade fairs in Pyongyang.

By contrast, Black Horse has an established record of doing business with North Korea, with its subsidiary stating on its website that the company has exported oilseed meal, various oils and buckwheat to North Korea since 2023.

Sokolov also attended a session of the Russia-DPRK Intergovernmental commission on bilateral cooperation at Moscow in late November, while his project was fully underway.

The meeting brought together Russian officials and businessmen along with their DPRK counterparts, with talks largely focusing on energy and natural resources but also covering tourism, education and infrastructure, NK News found.

The commission functions as the main mechanism for directing bilateral economic ties, which has also seen Russia increasingly rely on North Korean laborers.

MORE JOINT VENTURES

Sokolov’s description of his factory as the first among many planned bilateral projects comes as DPRK firms openly advertise joint ventures in Russia, spanning sectors like textiles and labor exports among others.

The latest issue of North Korea’s Foreign Trade magazine includes an article on the Kangguk Trading Corporation, which claims to run “offices, branches and joint ventures” in Russia and China.

The periodical also spotlights Joyang Textile Joint Venture Company, stating that it boasts “quality certifications” in Russia and Mongolia in a sign that it is exporting its products to foreign markets in likely breach of sanctions.

The company registered its brand in Russia in 2024 and reportedly attended a business expo in Vladivostok last year.

Meanwhile, the DPRK’s Ragwon Corporation was previously reported to be eyeing construction of a meat-processing plant near Moscow, though there is no evidence to date that actual work has started on these plans.

Edited by Bryan Betts