MOSCOW, Sept 8: Trade between Russia and South Korea dropped steeply since the start of the year because of financial problems in both countries, a news agency reported Tuesday, reports AP.

Korean imports to Russia fell 5.7 per cent to 1.5 billion dollars since the start of the year. In the same period. Russian exports to Korea were down by a third, now at 583 million dollars, the Interfax news agency reported.

Russia's decision to stop paying foreign debts and aftershocks of last year’s Asian crisis. were primarily to blame, said Li Kwang He. head of the South Korean Consulate's commercial department in the eastern port city of Vladivostok.

He said, however, that Russia should be able to sell more raw materials abroad^