The Current Situation and Issues of Japan-Russia Relations Observed in the Russian Far East Japan’s Current Policy for Economic Cooperation with Russia

Abstract

In October 2017, the 19th Russo-Japanese summit meeting was held. In response to a series of state programs for the development of the Far East, the Japanese government offered eight items of economic cooperation with Russia to forward negotiations on the peace treaty between Japan and Russia. In September 2017, Japan and Russia agreed on five items in the Joint Economic Activities business plan for four islands of the “northern territories,” proposed by President Putin during his visit to Japan. However, as Russo-Japanese trading still heavily relies on a segment of energy and resources, the trade turnover has substantially decreased over the last three years (2014 to 2016) due to the declined market price of energy. Japan and Russia should endeavor to allow not only big businesses but also local companies or medium and small businesses, including entrepreneurs, to develop sustainable Japan-Russia business relations. Newcomers would create new businesses, which could start a structural reform of the current trade model and eventually help to develop Japan-Russia relations.