THE ART OF THE DEAL:

The presidents of Russia and South Korea pledged to push for the integration of North Korea into the regional economy, as Moscow sought a bigger say in shaping the future of the Korean peninsula and Seoul looked for support for the North's economic development. [...]

While Mr Trump has been criticised in the west for making too many concessions and getting little in return from Mr Kim, Russian diplomats urged that more incentives needed to be given to North Korea. "They need to be rewarded for the steps they take, such as destroying the test site," said Vladimir Sukhinin, a former Russian ambassador to Pyongyang. "Therefore, the lifting of sanctions should begin in a step-by-step process as progress is made in the negotiations."

Mr Putin was also believed to have consulted Mr Moon on a planned visit by Mr Kim to Russia. The Kremlin said Friday a date for the trip had not been agreed yet, but Russian officials were trying to get Mr Kim to visit Vladivostok in September, when Mr Putin plans to host Chinese president Xi Jinping, Japanese prime minister Shinzo Abe and Mr Moon for an economic forum in the Pacific port city.

But bilateral economic co-operation was as important in the talks between Mr Putin and Mr Moon as geopolitics.

State-controlled South Korean gas company Kogas signed a memorandum of understanding with Russian gas producer Novatek over potential participation in its new $27bn LNG project in the Arctic, amid interest from Saudi Arabian and Chinese rivals. Arctic LNG 2 is one of the world's largest upcoming LNG projects, and will enhance Russia's position as a major LNG exporter. Kogas is one of the world's largest buyers of the super-cooled, liquefied fuel.

The two governments also signed agreements on regional exchanges, key to Russia's goal to reinvigorate the economy of its struggling far eastern provinces, and on co-operation in technology, an area where Moscow hopes for investment from South Korea.

Mr Moon urged Russia to prepare together for pulling North Korea into trilateral economic co-operation. "I think that the time for this has come," he told Russian and Korean business leaders on Friday.

Defense Secretary James Mattis on Wednesday said he is "not aware" of any steps North Korea has taken yet to denuclearize following the historic summit between President Trump and North Korean leader Kim Jong Un.

On Friday, the United States and South Korea announced that they had come to a joint alliance decision to indefinitely suspend two exchange training exercises. The announcement follows the alliance's earlier decision to suspend this year's planned iteration of the Ulchi-Freedom Guardian computerized military exercises.

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