Russia–Japan Relations: Politico-strategic Importance of the Disputed Southern Kurile Islands/Northern Territories

The dispute over the sovereignty of the Southern Kuriles as known to the Russians and Northern Territories as termed by the Japanese has been the main hurdle in the full blown development of relations between the two countries. The settlement of the territorial dispute is linked to the signing of the peace treaty between the two. The geo-strategic/political developments in the Asia Pacific region in the recent years have impacted the negotiations on the disputed territories. The Russian President Medvedev’s visit to the Kunashiri Island on 1 November 2010 and the following military build-up by Russia on these territories have changed the security scenario of North-east Asia. The Russian stance on the issue has hardened which is attributed to its resurgence and assertiveness in Asia and elsewhere consequent to the flush of revenue from oil and natural gas exports. Russians do not seem to be in a mood to even negotiate on the two small islands of Shikotan and Habomai, while the Japanese position has been changing over the years and now they are insisting on the return of all the four islands. However, the trade and investment relations between the two are steadily growing as the Japanese need Russian oil and natural gas and the Russians are keen for Japanese investment and technology. The Russians in the meantime have developed strong economic ties with China and South Korea which indirectly has a bearing on the state of relations between Russia and Japan. A compromise between the two can be of immense benefit to both the countries. The development of the relations to its full potential would be possible only after the resolution of the territorial dispute.