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Thread: Japan, Russia Unveil $2.5 Billion in Economic Deals
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    Japan, Russia Unveil $2.5 Billion in Economic Deals

    TOKYO—Japan launched a fresh effort Friday to overcome a deadlock in a territorial dispute with Russia by announcing bilateral economic deals worth ¥300 billion ($2.5 billion).

    The deals, in sectors such as energy, health care and transport, are part of a push by Japanese Prime Minister Shinzo Abe to soften Moscow’s resistance to Tokyo’s claims on four islands to Japan’s north that are administered by Russia.

    The islands were seized from Japan by the Soviet Union at the end of World War II and are now considered by Russia to be an integral part of its territory.

    Following a second day of summit talks between Mr. Abe and Russian President Vladimir Putin, the two sides also said they may expand visa-free travel for Japanese former residents of the islands and agreed on a joint study into the possibility of joint economic development of the territory.

    apan added that it would relax visa rules for Russian businessmen and tourists to Japan.

    Mr. Abe had raised hopes of a breakthrough in Japan on the dispute earlier this year, but Russia has remained firm in its opposition to compromise.

    Russia, currently under international economic sanctions following its 2014 annexation of Crimea, is eager to attract foreign investment, particularly for its poor far-eastern region.

    Among the new deals, Japanese trading house Marubeni Corp. and Russian oil giant OAO Rosneft will jointly develop a gas field off the southwestern coast of Russia’s Sakhalin island, close to Japan.

    Russian gas giant Gazprom and Japan’s Mitsui & Co. and Mitsubishi Corp. will work together to develop gas fields and build liquefaction facilities in the Yamal Peninsula, in Russia’s north.

    Separately, Russia and Japan plan a $1 billion fund for equity investments in bilateral projects such as pharmaceuticals and energy.

    The Russian Direct Investment Fund and Japan Bank for International Cooperation will each invest $500 million in the fund, according to RDIF Chief Executive Kirill Dmitriev.

    Mr. Dmitriev said 20 joint investment projects are planned, with four or five likely in the next six months. The project areas include agriculture, airport logistics, manufacturing and health care, he said.

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    The offers, in sectors together with power, health care and transport, are part of a push by jap high Minister Shinzo Abe to soften Moscow’s resistance to Tokyo’s claims on four islands to Japan’s north that are administered by way of Russia.The islands have been seized from Japan through the Soviet Union on the stop of world battle II and are actually taken into consideration through Russia to be an quintessential a part of its territory.

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    Russia and Japan are very good allies. They have achieved a lot in life and are developing very imposingly. Japan strongly momozhat in the technological palana, and Russia has huge resources that Japan needs. Japan needs a large market for goods and Russia is a very large market that gives a very large profit.

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