Putin at Abe’s hometown; island row tops agenda

TOKYO/MOSCOW — Russian President Vladimir Putin arrived several hours late Thursday for talks in Japan with Japanese Prime Minister Shinzo Abe, who is betting that a hotspring resort near his ancestral home will be the right venue for a breakthrough with Russia over a seven- decade territorial dispute.

Discussions over disputed islands will top the agenda at the meeting in southwest Japan, according to a Japanese government official who asked not to be named due to department protocol. Messrs. Abe and Putin will head to Tokyo on Friday for talks on economic cooperation, from nuclear energy to infrastructure to agriculture.

At the beginning of their meeting, Mr. Abe said he hoped Mr. Putin could relieve his fatigue by taking a soak in the hot spring. Mr. Putin thanked Mr. Abe, and said he hoped the meetings will contribute to the development of relations.

Mr. Abe told a group of former islanders Sunday that he’s determined to resolve the issue “within my generation.” Mr. Putin has been more circumspect, telling Japanese media in an interview published Tuesday that the two countries can build trust through economic activities that cover the islands, and that talks on the dispute can’t be limited by his or Mr. Abe’s terms in off ice.

The 16th summit between the pair comes at a crucial time for both countries. Russia has been starved for investment and trade amid low oil prices, and international sanctions over its actions in Ukraine. Japan is on a quest to diversify energy sources, with its nuclear power industry hobbled by the aftermath of the 2011 Fukushima disaster.

The election victory of Donald Trump, seen as relatively friendly to Mr. Putin, adds to the prospects for better ties between Tokyo and Moscow. Japan tends to follow the foreign policy direction of the US, its only formal ally, and relations with Russia suffered after Japan introduced sanctions at the height of tensions over Ukraine, following the lead of the Obama administration.

A key to improved ties is the sovereignty of four islands that the Soviet Union invaded at the end of World War II, expelling all 17,000 Japanese residents. Japan’s off icial position is that the islands — home to rich fishing grounds — are an inherent part of its territory and are under illegal occupation. The two countries have yet to sign a formal peace treaty.

In a Bloomberg interview in September, Mr. Putin said that resolving the conflict over the islands should be part of setting the stage for the long-term development of relations with Japan. But even after 15 meetings, Japan’s best-known proponent of better ties with Russia said the two days of intensive talks are just the beginning.

“To imagine that two islands will come back at this summit is unrealistic,” said Muneo Suzuki, 68, a former lawmaker from the northern island of Hokkaido. “We are now on the starting line.”

GAZPROM, MARUBENI

Messrs. Abe and Putin are scheduled to hold a press conference in Tokyo on Friday. Later in the day, they will attend a Russia-Japan business forum and Mr. Putin will visit a judo center in the capital.

Russian Energy Minister Alexander Novak told reporters in the summit city of Nagato on Thursday that 23 agreements and memorandums have been prepared between Russian and Japan companies. The firms include Novatek PJSC, Rosneft PJSC, Gazprom PJSC on the Russian side, and Mitsui & Co., Marubeni Corp. and Tokyo Electric Power Co. Holdings Inc. in Japan.

The two countries are discussing 65 deals, spanning a range of sectors including energy, infrastructure and health care, Alexey Repik, chairman of the RussiaJapan Business Council said in an interview in Tokyo this week. Japanese investment in Russia rose by 51% in 2015, even as total foreign investment fell by more than 70%.

Still, many obstacles remain to closer Japan-Russia ties. Last month Russia was reported to have deployed anti-ship missiles on two of the disputed islands. Russia told Japan earlier this month that it saw the expansion of US anti-missile systems in Asia as a threat, after reports that Japan was considering purchasing a new system from the US.

“Negotiations are different with a partner you can trust, compared with a partner you cannot trust,” former Vice-Foreign Minister Yasuhide Nakayama said in an interview last week. “They are a threat to Japan,” he added, referring to Russia.

His view is shared by many Japanese. A survey published by Pew Research Center last year found 73% of Japanese respondents had an unfavorable view of Russia, one of the highest levels among the countries polled.

Mr. Abe has also tried to damp down expectations of progress, emphasizing the difficulty of gaining even the slightest concession, such as improving ease of travel.

“The former islanders are getting old,” he told parliament last week. “It’s our duty to respond to their wish to be able to go back and forth freely. Of course that’s an extremely difficult problem. Some people have sneered, saying it isn’t possible. But if I give up, we won’t progress even a millimeter.” — Bloomberg