Russian stance makes Japan islands deal impossible

Significance

As Prime Minister Fumio Kishida's cabinet shapes its approach, the major outstanding bilateral issues with Russia remain unresolved: the dispute over the South Kuril islands/Northern Territories and the still unsigned formal peace treaty to end the Second World War. The Japanese-Russian economic relationship continues regardless, with particular emphasis on energy.

Impacts

• Japan will strengthen its alliance with the United States and regional allies, while Russia will further develop partnership with China.
• Energy cooperation with Japan will strengthen Russia's role as a supplier of energy to East Asian countries.
• The Trans-Siberian route will grow in importance as a freight link between Japan and Europe.