China and North Korea economically taking over Eastern Russia - Ukraine's intelligence
Photo: China and North Korea are economically taking over eastern Russia (Getty Images)
China and North Korea are gradually taking over the eastern regions of Russia economically. Thus, Russia is increasingly paying off its allies in the war against Ukraine with its own territories, according to the Foreign Intelligence Service of Ukraine.
China is increasing its economic influence. According to forecasts, its investments in the region could reach one trillion rubles by 2025. However, most of the deals are related to trade: there are no infrastructure projects.
According to Viktor Kalashnikov, a senator from the Khabarovsk Territory, in 2024, the volume of Russian-Chinese trade increased by 5.5 million tons, and in the first half of 2025, by another 36%.
At the same time, China is conducting a creeping demographic expansion. Up to two million Chinese already live between Vladivostok and the Urals, and this number is growing. This is facilitated by privileges and the introduction of a visa-free regime. Enclaves are even being formed where Russians practically do not work.
North Korea's participation in expansion
At the same time, Moscow is involving North Korea in the development of the region. Over the past year, more than 15,000 North Korean workers have arrived in the Far East, and unofficially, up to 50,000. Russian companies have already ordered 153,000 labor contracts.
This creates a situation where two nuclear powers are simultaneously strengthening their positions on the territory of a third. China is forming economic dependence, and North Korea is forming labor dependence. Both countries are solving their own problems at the expense of Russian resources.
In the long term, the growth of China's presence and the expansion of North Korean labor quotas could create a conflict of interest between the partners. The Kremlin risks losing control of 40% of its own territory—almost 7 million square kilometers with a population of 7.9 million people—turning the Far East into an arena for foreign strategies.
Economic crisis in Russia intensifying
Russia's economy virtually stalled in the second quarter of 2025. A state of technical stagnation is observed. Economic stagnation is a situation where economic growth is virtually absent or very weak for a long period of time.
Russian GDP growth will slow to 0.9% and 1.0% in 2026. In 2024, growth was at 4.1%.
This fall, one in ten companies in Russia plans to cut staff. Businesses are forced to cut costs due to falling demand, higher taxes, and more expensive loans.
According to the latest estimates, Russia is spending half of its budget on the war against Ukraine.
