Prime Minister Vladimir Putin determines priorities of economic cooperation with Japan.
The visit by Russian Prime Minister Vladimir Putin to Japan was devoted to the development of bilateral economic cooperation, but avoiding the territorial issue over the South Kuril Islands is practically impossible at any bilateral summit. Moscow is convinced that territorial issues are no obstacle to economic cooperation, whereas Tokyo warns that this is an impediment, and the problems must be resolved as soon as possible. Japanese Prime Minister Taro Aso reminded Putin about Japan's position. "If we can remove this bone of contention, we will build relations of true partnership," Aso declared.
Putin was expected to make a statement on the Kuril issue in Tokyo. He sanded off the rough edges by suggesting that Aso meet with President Dmitry Medvedev at the G8 summit in Italy in June.
"It is at this meeting (in Italy - Gazeta) that all variants of resolving the issue, including the one you mentioned, will be discussed," Putin said, referring to a proposal to return to Japan three and a half rather than four islands for the conclusion of a peace treaty.
"As for the link between trade and economic cooperation and a peace treaty, I would like to put it straight from the start: We are not discussing the conclusion of a peace agreement to create the conditions for economic cooperation. We are developing economic cooperation to create the conditions for the signing of a peace treaty," Putin explained.
Investment, Japanese style
Speaking at the meeting of Russian and Japanese governors on Tuesday morning, Putin made it clear that during the visit he intended to focus on the economy. He said it is particularly important to deepen cooperation between Russian and Japanese regions. "This could promote socio-economic development between the two countries, that is, help us overcome the consequences of the global crisis," he said.
At the Russian-Japanese business forum, Putin explained what projects Japanese businessmen could invest in so as to survive the crisis, and even gain from it. Now they have to make a difficult choice. Putin offered the opportunity to investment in major projects in Russia - from space exploration and nano-technologies to modernisation of the Trans-Siberian Railway and the construction of Olympic stadiums in Sochi. However, investment in the oil and gas industry still remains the most realistic. Apart from the Sakhalin-1 and Sakhalin-2 projects, Putin invited them to participate in the further development of the shelf (Sakhalin-3, etc.), and in the construction of two oil pipes - Sakhalin-Khabarovsk-Vladivostok - to be completed by 2011, and the second stage of the Eastern Siberia-Pacific Ocean (ESPO). In the Primorye Territory, the Russian Government is planning to build an oil terminal and a plant for the production of liquefied natural gas (LNG).
Russia also wants to export grain to Japan. "It is gratifying that Japanese business circles have reacted so promptly to our signals. This is the constructive approach we hoped for," Putin said, praising the Japanese businessmen who have already started investing in the Russian woodworking industry.
Nuclear deal
New contracts are expected from the intergovernmental agreements signed during the visit. The most important of these is an agreement to cooperate in nuclear energy. The agreement is expected to allow Russia to increase its share of nuclear fuel in the Japanese market from the current 15% to 25%, primarily, by giving it an opportunity to deal with Japan directly. Lack of a relevant intergovernmental agreement compelled Russian nuclear fuel companies to operate in Japan through third countries. "There will be new contracts worth billions of dollars," head of Rosatom (Russian Nuclear State Corporation) Sergei Kiriyenko said.
Japanese Prime Minister Taro Aso agreed with him at the completion of the talks.
International issues
In an interview with the Japanese media on the eve of his visit to Tokyo, Putin made several statements on domestic and foreign policy, thereby addressing not only the Japanese but also the Russian voters and the Barack Obama administration.
He started with the territorial issue: "Determination of foreign policy and relations with foreign states are definitely within the competence of the Russian President. Considering that President Medvedev and Japan's Prime Minister met, and established a direct contact and dialogue on this issue, there is reason to expect its development in the same constructive spirit."
Asked whether Medvedev will run for the presidency at the 2012 elections, Putin said: "He is a very decent man, and will decide his political future based on the national interest and on the results of our joint work... Depending on the effectiveness of our work, both President Medvedev and I will decide what to do in the future - what he should do and what I should do."
When asked about his attitude to the President's criticism of the Government, Putin replied: "A critical view of the Government's actions is absolutely normal. I am not always pleased with the decisions of some ministries and departments myself."
A third location for a US missile defence system in Europe is one of Russia's main foreign policy headaches. Although, as distinct from his predecessor, Obama is not rushing to deploy it, Washington still has not given up the plan. Putin linked this issue with talks on a new treaty to limit strategic offensive arms, in which Obama is interested. "Russia will certainly link missile defence (and all of its implications) with strategic offensive arms," Putin said, emphasising that "these systems are inseparably connected." "It does not take an expert to understand that if one side wants, or has an ‘umbrella' against any threat, it develops the illusion that it can do anything it likes," he summed up.
Putin commented on the growing US influence in post-Soviet regions. "This is quite a natural process... but feigning the impression that this does not concern us at all would be misleading. At any rate, it would be a mistake as far as the local people are concerned, who, if I may repeat, have quite close ties with Russia."
By Maxim Tovkailo
