http://home.kyodo.co.jp/modules/fstStory/index.php?storyid=375648
Fukuda, Putin to agree to 'higher dimension' ties, economic exchanges 

Moscow, April 26 KYODO
     Japanese Prime Minister Yasuo Fukuda and Russian President Vladimir Putin 
are expected to agree to enhance economic ties, cooperate in the Far East and 
Asia-Pacific regions, and work to raise relations to ''a higher dimension'' as 
they met Saturday in Moscow during the premier's two-day visit.
     Fukuda, who will also meet President-elect Dmitry Medvedev, is to take up 
a decades-old dispute over four Russian-administered islands and press for 
progress in stalled negotiations.. But the thorny issue would likely remain on 
the back burner as the leaders seek to establish a good rapport with each other 
at their first talks.
     ''I understand that there are pending issues between us and I hope to 
continue the dialogue between us,'' Putin said on the outset of the talks at 
his official residence in the suburbs of Moscow. ''We are continuing a dialogue 
on the peace treaty and creating the necessary atmosphere for progress in that 
direction.''
     In response, Fukuda expressed hopes that they can stimulate further 
cooperation in a broad range of areas and said, ''I hope we can raise bilateral 
relations to a higher dimension so as to contribute to the prosperity and 
stability of the Asia-Pacific region.''
     Fukuda would emphasize to Putin, who will step down next month as 
president but remain influential as prime minister, the need for progress 
toward resolving the territorial row to conclude the peace treaty and enable 
relations to grow further.
     Fukuda and Putin are expected to agree to strengthen relations with more 
frequent bilateral summits and discuss global issues, including North Korea, 
China, Central Asia and Iran, Japanese officials said.
     The row over Kunashiri, Etorofu, Shikotan and the Habomai islet group, 
occupied by the Russians since the final days of World War II, has prevented 
the two countries from formally ending wartime hostilities with a peace treaty. 
They are known as the Northern Territories in Japan and the Southern Kurils in 
Russia.
     Meanwhile, with trade between Japan and Russia expanding more than 
fivefold to $21.26 billion between 1998 and 2007, the leaders would discuss how 
to further boost bilateral economic and technical cooperation in areas of 
mutual interest, such as energy and the environment.
     One of the highlights at the talks would be an agreement on a joint 
project between a Japanese government-affiliated corporation and a Russian oil 
company to explore new oil fields in the Severo-Mogdinsky area near Irkutsk, 
the first of its kind between the two nations in East Siberia.
     The plan would involve a total investment of 10 billion yen from both 
sides over five years. If successful in locating oil fields, the Japan Oil, Gas 
and Metals National Corporation and Irkutsk Oil Co. plan to export the oil to 
Japan through the Eastern Siberia-Pacific Ocean pipeline, currently under 
construction.
     The project, in line with a Japan-proposed initiative last year for more 
cooperation in the Far East and Eastern Siberia, fulfills a match of interests 
-- Russia's eagerness to win Japanese investment in developing the region and 
Japan's hopes for greater access to the oil-rich areas to help ease its heavy 
reliance on Middle East energy sources.
     It also carries strategic significance, as Japan has been competing with 
China over the oil supply and the route of the pipeline.
     The 71-year-old prime minister is also expected to seek Russia's 
cooperation at the Group of Eight summit to be hosted by Japan in July, 
including on the key issues of climate change, the making of a post-2012 
emissions cut framework, African development, nuclear nonproliferation and 
global economic issues.
     In particular, Fukuda will make a pitch to the Russian leaders to support 
Japan's proposal of the so-called ''sectoral approach'' to set emissions cut 
targets and the envisioned framework involving all major emitters beyond the 
current Kyoto Protocol.
     Ahead of the afternoon meetings, Fukuda attended a morning event with 
Russian students learning the Japanese language, which has recently gained 
popularity as a foreign language, especially in Moscow.
     The Moscow visit is part of a series of diplomatic efforts by Fukuda to 
raise his profile, both domestically and abroad, ahead of the G-8 summit.
     However, a slump in support ratings and domestic woes stemming from a 
divided parliament have forced Fukuda to forgo a plan to visit Britain, France 
and Germany, which are also G-8 members.
     Fukuda, who took office last September, is the first Japanese prime 
minister to visit Russia since Junichiro Koizumi in May 2005.
==Kyodo


      
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