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N Korea funds transfer 'to begin' N Korea funds transfer 'to begin'
(about 2 hours later)
The transfer of North Korean funds frozen in a bank in Macau - a key issue in nuclear disarmament talks - is about to begin, media reports say. The transfer of North Korean funds from a bank in Macau - a key issue in nuclear disarmament talks - is about to begin, media reports say.
Japanese news agency Kyodo quoted Macau government sources as saying the transfer was to start on Thursday. Japanese news agency Kyodo quoted Macau government sources as saying the transfer would start on Thursday.
North Korea has insisted it receives the $25m (£12.7m) before it begins shutting down a key nuclear reactor. North Korea has insisted it wants to get the $25m (£12.7m) before it begins shutting down a key nuclear reactor.
Earlier, US officials said Russia would help resolve the row and kick start a deal that has stalled since February. Russia confirmed on Wednesday it would help resolve the row and kick-start a deal that has stalled since February.
Under the 13 February agreement, North Korea had agreed to shut down and seal its Yongbyon nuclear reactor within 60 days in return for aid.Under the 13 February agreement, North Korea had agreed to shut down and seal its Yongbyon nuclear reactor within 60 days in return for aid.
But the deadline came and went as the row over the funds rumbled on.But the deadline came and went as the row over the funds rumbled on.
'Towards critical mass' 'Hopeful'
On Wednesday, US Treasury spokeswoman Molly Millerwise confirmed that Washington was working with Russia on how to transfer the funds. Macau government officials were quoted by Kyodo as saying that the transfer of the funds from Banco Delta Asia (BDA) would begin by the end of the day.
The money would be transferred to the US Federal Reserve bank before being sent on to a North Korean account at a bank in Russia, the news agency reported.
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" Q&A: The bank rowN 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" Q&A: The bank row
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. There have been numerous reports in recent months of a possible breakthrough in the funds row, although they all came to nothing.
The US blacklisted the bank, but since the February deal has unblocked Pyongyang's funds for transfer. However, banks have balked at handling the money. But optimism grew this week that a solution was close.
"I can go out on a limb and say I am hopeful that we will have some news for you very soon on this," US chief negotiator Christopher Hill told reporters on Wednesday.
His upbeat comments followed Moscow's decision this week to allow a private Russian bank to act as a conduit for the North Korean funds.
Pyongyang reportedly wanted the money sent via electronic bank transfer to prove it was clean.
Many banks had balked at the prospect of handling the money, which was frozen in 2005 when the US accused the Banco Delta Asia of acting as a conduit for money earned by the North from illegal activities.
Although the bank remains blacklisted by the US, the $25m was unfrozen to help ease progress on the February nuclear deal, which was agreed at talks involving the US, North and South Korea, Japan, Russia and China.
North Korea has said in the past that it will begin the process of closing its reactor once it has received its funds.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 western coast. It carried out a similar test off its east coast at the end of May. A week ago, the North carried out short-range missile tests off its western coast. It carried out a similar test off its east coast at the end of May.
The US described the launches as "not constructive".The US described the launches as "not constructive".