Russian banks poised to transfer North Korea frozen funds

Russia said on Wednesday it was poised to transfer North Korean funds frozen at a Macau bank, raising prospects for an end to the deadlock that has stalled a nuclear disarmament deal for weeks.
Russia has said it was ready to give the green light to one of its banks to transfer the $25 million stuck in Banko Delta Asia (BDA) provided Washington gave written guarantees it would not fall under US sanctions against Pyongyang.
"In principle, we are ready," Russian news agencies quoted Russian Deputy Foreign Minister Alexander Losyukov as saying. "I do not know when this will happen, but we are talking days."
A Russian finance ministry source told Itar-Tass news agency that the "appropriate operation was being prepared." Pyongyang has refused to honour a February deal to begin shutting its Yongbyon nuclear reactor and source of material for atomic bombs until its funds in the BDA is released through normal banking channels.
Losyukov said Russia's finance ministry was now negotiating written guarantees with Washington. He said it was too soon to identify the Russian bank involved in the transfer.
The funds were blocked after the United States blacklisted BDA, accusing it of laundering illicit funds for North Korea. Because of the stigma attached to holding North Korean assets, banks have balked at acting as a conduit for the money to be returned to Pyongyang.
South Korea's foreign minister said earlier on Wednesday that negotiations to transfer the North Korean funds were in their final stages, and Yonhap news agency quoted an official in Seoul as saying the deal could be completed by the end of the week.
Optimism the impasse could be resolved grew this week after US officials said Moscow would help out, and confirmation came from the Russian ministry on Wednesday. The Wall Street Journal reported on Monday that Far East Commercial Bank, a private Russian bank where Pyongyang has a dormant account, was likely to receive the funds.
Russia is one of five regional powers - along with China, Japan, South Korea and the United States - which has been negotiating with impoverished North Korea to end its nuclear weapons programme in exchange for massive economic aid.
Under the February agreement, North Korea is slated to get 50,000 tonnes of heavy fuel oil, or its equivalent, once it completes initial steps, including shutting down Yongbyon. During the next phase of the pact, which includes making a complete declaration of all its nuclear programmes and disabling all its nuclear facilities, North Korea will get economic, energy and humanitarian aid up to the equivalent of a further 950,000 tonnes of heavy fuel oil.