Thorny territorial dispute overshadows upcoming Abe-Putin summit

According to the Soviet-Japanese Joint Declaration of 1956, Russia agreed to return two of the four islands after a bilateral peace treaty was signed, while Japan refused to sign such a treaty, insisting on the return of all four islands.

The conclusion of a peace treaty will "depend, among other things, on the flexibility" of Japan, said Putin, adding that Russia also wants full-scale normalization of relations.

It was not the first time that Putin made similar remarks on the territorial dispute, in spite of Japan's hopes otherwise.

In an interview with Bloomberg early September before meeting with Abe in Vladivostok on the sidelines of the Eastern Economic Forum (EEF), Putin said Russia did not "trade territories."

Russia has also stepped up its control over the islands by reportedly deploying in November Bastion and Bal coastal defense missile systems on two of the disputed islands.

There should be no high expectations for any immediate progress on the signing of a peace treaty between Russia and Japan due to difficulties in ironing out differences, Russian Foreign Minister Sergey Lavrov said in early December.

Meanwhile, another issue that also obstructs Japan's intended economic cooperation with Russia as well as bilateral ties is the sanctions Japan has slapped on Russia along with its western allies following Russia's takeover of Crimea.

"Japan has joined the sanctions against the Russian Federation. How are we going to further economic relations on a new and much higher basis, at a higher level under the sanctions regime?" Putin reportedly told the Japanese media on Tuesday.

The two countries are expected to nail down some 30 economic cooperation projects during the upcoming summit between Abe and Putin, according to local media, though some Japanese enterprises are concerned over the uncertainties of Russia's investment environment over the Japanese sanctions.

There have also been concerns over the attitude of the United States, as Washington, Japan's military ally, has had a tense relationship with Russia following the Ukraine crisis, though hopes for a change have been raised following Donald Trump's win in US presidential election, who was reported to have a new approach to Russia.

"Japan-Russia relationship has been closely related to the Japan-US relationship since the 1950s," said Yoshiki Mine, former diplomat and representative of the Institute of Peaceful Diplomacy.

"It is important for Japan to remake its negotiation strategy with Russia in line with the Japan-US relationship under the new US administration to be led by Donald Trump, including the sanctions against Russia," he said.