Japan, Russia Wrap Up Peace Treaty Summit

TOKYO, , (APP - UrduPoint / Pakistan Point News - 16th Dec, 2016 ) - Japan and Russia on Friday struck economic deals to build confidence towards a peace treaty to formally end World War II that has been prevented by a spat over Russian-occupied islands claimed by Tokyo.

The second and final day of talks in Tokyo comes after Prime Minister Shinzo Abe and President Vladimir Putin met Thursday in Abe's ancestral hometown in western Japan in the hopes of achieving a breakthrough.

But despite a "frank" exchange of views the leaders announced no major headway on a peace treaty, though they did make progress on ways to cooperate economically, including in the contested area.

Abe, speaking at a luncheon with Putin, said they had agreed on "more than 60 projects" in economic-related areas, with details to be announced at a news conference later in the day.

"I believe there are a wide range of areas where Japan and Russia have not exercised our fullest potential, despite the fact that we are neighbouring nations," Abe said.

Putin said business ties were a way to build confidence. "Our work together on the economic front will help us create a foundation to improve relations," he said. Local media reported Japan was expected to agree to provide an economic package worth about 300 billion Yen ($2.5 billion), including private sector projects in areas such as mining, and loans for natural gas exploration and economic development in Russia's Far East.

The Soviet Union seized four islands off Japan's northern coast in 1945 in the closing days of the war.