North Korea is reportedly having much difficulty completing financial transactions and attracting foreign investment due to international community sanctions over its nuclear activities.

A government official in Seoul said Friday that Pyongyang is having trouble settling payments for trade deals as financial institutions in the West are avoiding business with the North since the U.S. imposed financial sanctions on the country in September 2005.

The official said that as a result, North Korea can make financial dealings via Russia and a few other countries only.

He added that China has made little investment in the North except for some low-budget mining development since Pyongyang conducted its first nuclear test in October last year.

The official said that North Korea is also having difficulty importing basic raw materials and equipment due to the global ban on the transfer of strategic goods to the communist country.