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Russia and North Korea Near Completion of Joint Factory in Defiance of Sanctions
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A Russian firm has partnered with a North Korean entity to build a plastics manufacturing facility in Vladivostok, NK News reported on March 10.
Led by Moscow-based Golden Autumn Agroholding, the initiative is a significant escalation in bilateral manufacturing projects between the two heavily sanctioned nations. The joint venture openly defies international law, operating in direct violation of UN Security Council Resolution 2375, which strictly prohibits commercial partnerships with Pyongyang.
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Vladimir Sokolov, head of Black Horse, the parent company of Golden Autumn Agroholding, confirmed the project through social media posts reviewed by NK News, identifying the North Korean partner as “Phurunsan,” likely referring to the Phurunsan Plastics Joint Venture Company.
Sokolov stated that work on the main structure of the factory was completed by late February, with interior construction ongoing. The factory is expected to begin production in April, focusing on manufacturing various packaging materials, including polyethylene bags for garbage, food packaging, and disposable tableware. A special emphasis will be placed on biodegradable plastic, aligning with global environmental responsibility trends.
The factory is located in a northern neighborhood of Vladivostok, near the construction site of a residential complex. Satellite imagery, seen by NK News, confirms that work began in 2025, with a concrete foundation laid in the summer, followed by metal frame construction in the fall.
By late December, a red roof had been installed on the main factory building, which spans approximately 7,104 square feet.
Sokolov’s description of this facility as the first in a series of planned joint ventures between Russia and North Korea indicates an expansion of cooperation in various sectors. This includes textiles, labor exports, and energy, with North Korean firms openly advertising joint ventures in Russia.
NK News highlighted the growing trend of North Korean companies, such as the Kangguk Trading Corporation and Joyang Textile Joint Venture Company, establishing a presence in Russia, in apparent breach of UN sanctions.
The establishment of a joint venture between a North Korean company and a Russian firm raises concerns about violations of UN sanctions, specifically UN Security Council Resolution 2375, which prohibits member states from creating cooperative entities with North Korean firms on a commercial basis.
While little is known about the Phurunsan Plastics Joint Venture Company, it has been shown on North Korean state television and participated in international trade fairs in Pyongyang, according to NK News.
Golden Autumn Agroholding, under Sokolov’s leadership, has a history of doing business with North Korea, including exporting oilseed meal, oils, and buckwheat since 2023.
In addition, Sokolov attended a session of the Russia-DPRK Intergovernmental Commission on Bilateral Cooperation in Moscow in November 2025, which focused on energy, natural resources, tourism, education, and infrastructure. The commission has become a key mechanism for driving economic ties between the two nations, with Russia increasingly relying on North Korean laborers.
The establishment of this plastics factory is just one piece of a much larger, state-sponsored effort by Moscow to bypass international law using North Korean resources. While corporate joint ventures are expanding, Russia is also aggressively importing illegal labor to prop up its domestic industries.
North Korea had previously sent thousands of workers to Russia—often disguised as students—in direct violation of UN Security Council resolutions. By openly relying on North Korean labor and manufacturing partnerships, Moscow is simultaneously dodging Western sanctions and providing Pyongyang with a vital stream of illicit revenue.
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