Putin proposes Russia, Japan agree to historic peace deal

Japan's Prime Minister Shinzo Abe and Russia’s President Vladimir Putin

Japan's Prime Minister Shinzo Abe and Russia’s President Vladimir Putin

Soviet forces occupied the islands at the end of World War II, and the territorial dispute has prevented Moscow and Tokyo from formally ending hostilities in the war. They are administered by Russian Federation and claimed by Japan.

"Let us sign the peace treaty. and later we will continue to talk about all of our disagreements as friends on the basis of a peace treaty", Putin said at an economic conference in Vladivostok. In September, 1951, the Soviet Union refused to sign the Peace Treaty of San Francisco with Japan.

Relations between China and Japan soured in 2012 over a territorial dispute over several tiny islands in the East China Sea.

Xi and Putin, in a show of the great importance they attach to the traditional friendship between the two peoples, made time to attend bilateral people-to-people exchange activities, Wang said.

"It is not a joke", Putin added, suggesting the two countries commit to solving the territorial dispute in the text of the peace deal.

Earlier, Putin said security in the region was a key issue and that Russian Federation was concerned by a move to establish a U.S. missile defence system there. Putin said that Russian-South Korean trade rose 27% last year and 8% in the first half of this year, according to Yonhap news agency.

As Donald Trump continues to up the ante on a trade war, with the USA president recently threatening to place tariffs on all Chinese exports to the United States, Beijing is moving to further solidify its already-close partnership with Russian Federation.

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"An idea has just come into my head", Putin said at the event.

The two also confirmed that Putin will travel to Japan on an official visit next year, Abe said.

"This is called trolling".

Investors in the new entity include Russia's sovereign wealth fund, which is acquiring a 13% stake in the JV.

Russian Federation and Japan did not sign a formal peace treaty after the end of WWII in 1945, and the absence of an agreement has strained relations ever since.

Yoshihide Suga, Japan's chief cabinet secretary and top government spokesman, told a regular press briefing this week: "Our position that the Northern Territories issue is resolved before any peace treaty remains unchanged". "This stance hasn't changed". Abe smiled at the suggestion.

The two countries have launched various economic projects on the islands in areas such as the farming of fish and shellfish, wind-generated energy, and tourism.

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