Japanese Foreign Minister Hayashi criticized Russia's idea of tax incentives in the Kuril Islands to new organizations registered in the southern islands of the Kuril ridge, stating that it runs counter to Tokyo's position on the territorial issue and joint economic activities in the region. His words are quoted by RIA Novosti.
“Japan's position has been repeatedly voiced to the Russian side and is to carry out joint economic activities without prejudice to the political position of both countries,” the minister said, adding that Japan intends to continue building a constructive dialogue with Russia on this tax regime.
At the end of November, Russian and Japanese Foreign Ministers Sergei Lavrov and Yoshimasa Hayashi held telephone talks, during which they discussed a peace treaty regarding the ownership of the Kuril Islands. The parties “confirmed their intention to continue the dialogue” in order to conclude peace.
Due to the dispute over the ownership of the southern part of the Kuriles, Moscow and Tokyo cannot sign a peace treaty following the Second World War. Japan regards Iturup, Kunashir, Shikotan and the Habomai group of islands as their “northern territories”. In turn, Russia does not recognize the very fact of the territorial dispute.