South Korea has notified Russia it decided to suspend the Rajin-Khasan project among South Korea, North Korea and Russia.
The trilateral logistics project aims to bring Russian coal and other freight to South Korea via rail and sea.
On March 7, Seoul was known to have notified Moscow through multiple diplomatic channels that it will suspend the project as part of the new sanctions on North Korea. Russia reportedly expressed regrets at Seoul's decision.
On March 8, Seoul has come to announce a package of new sanctions on Pyongyang that includes the ban on entry into South Korea of the vessels that have visited North Korea. The suspension of Rajin-Khasan project may be part of the measures.
The U.N. Security Council last week adopted a resolution imposing the harshest sanctions ever on North Korea for its fourth nuclear test in January and the long-range rocket launch last month.