Pyongyang holds $25 million in Banco Delta Asia, which was frozen under U.S. pressure in 2005 over money laundering suspicions and unblocked April 13 after the North refused to continue denuclearization talks following a February breakthrough in the six-nation process.
Alexander Losyukov, who heads the Russian delegation at the six-party talks on the North Korean nuclear program, said: "The U.S. Treasury has not yet dropped its objections against the use of these funds, and that is causing problems."
"We cannot proceed until the North Koreans say that they have received the money, they are satisfied and ready to move ahead [with the talks]," Losyukov told a news conference in Moscow.
According to earlier reports, the parties have so far failed to find a way of returning the money to North Korea, as foreign banks have refrained from working with BDA after the U.S. Treasury banned American financial institutions from conducting any transactions with the Macao bank.
Under a breakthrough deal with the United States, China, South Korea, Russia and Japan in February, North Korea was to close down its Yongbyon reactor by April 14 in exchange for economic and political incentives, including fuel and food supplies to the impoverished Communist regime, which relies heavily on foreign aid.
But Pyongyang has insisted that the funds, frozen at the request of the U.S. over money laundering and counterfeiting charges, should first be released.
Pyongyang said April 11 that once the financial dispute has been settled, it would start shutting down the reactor and would complete the process within 30 days, missing a Saturday deadline, foreign media reported.
The reclusive state said it would also allow UN inspectors to monitor its nuclear sites.
Losyukov said that during his trip to Australia that begins Monday he plans to make a stop in Japan, where he will meet with the head of the Japanese delegation at the North Korean talks to discuss the current deadlock in the negotiations.
