Japan’s middle-sized companies will invest into Russian market until peace treaty is concluded

ST. PETERSBURG, June 18. /TASS/. Concluding a peace treaty between Russia and Japan will give an impetus to developing business cooperation between the two countries, Chairman of the Japanese Business Club Hiroshi Meguro said on Thursday at the St. Petersburg Economic Forum. "Concluding a peace treaty between our countries is a topic for politicians," Meguro told the roundtable "Russia-Japan: Prospects of Business Cooperation." "However, it is absolutely necessary to conclude it, because in the absence of such an agreement, middle-sized companies - the backbone of the Japanese economy - will not likely intensively cooperate with Russia. Unlike big business, they have no experience in cooperating with USSR and modern Russia," he noted. "Until a peace treaty is concluded between Russia and Japan, Emperor of Japan will not likely visit Russia," Meguro said. "For middle-sized businesses to invest into the country that has no peace treaty with Japan is unrealistic," he concluded. A total of 425 Japanese companies are currently represented in Russia, and the volume of Japan’s investment into the Russian economy stands at around $3 billion. "This is a very low indicator," the expert explained. "Japan has far greater presence even in such countries as Brazil and Japan," he added. Meguro said that one of the reasons hampering Japanese investment into the Russian economy is, first of all, the lack of clearly defined priorities of Russia’s economic development. "We don’t see the whole picture and don’t know which sphere of the economy Russian authorities consider the priority for Japanese investment," he noted. Easing or cancelling the visa regime may be helpful for expanding business cooperation, another participant in the discussion, Vice-President of the Japanese Association on Trade with Russia and New Independent Countries Masahiro Ibi said. He called on soonest resumption of inter-governmental talks on this issue. "Japan introduced sanctions against Russia in connection with events in Ukraine," Ibi said. "I wish that sanctions will be lifted as soon as possible. Despite sanctions, Japanese companies are trying to expand their businesses in Russia, but the cancellation of restrictions would give a new impetus to developing our business relations," he noted. The Japanese businessman also spoke in favor of continuing political dialogue between Russian and Japan at the highest level. "Japan’s industrial circles sincerely want Russian President Vladimir Putin to make an official visit to Japan this year," he said. Iri also noted that representatives of Japan’s business circles intend to actively participate in the economic forum which is planned to take place in September in Russia’s Far Eastern city of Vladivostok. Russia-Japan peace treaty Russia and Japan have no peace treaty signed after World War II. Settlement of the problem inherited by Russia’s diplomacy from the Soviet Union is hampered by the years-long dispute over the four islands of Russia’s Southern Kurils - Shikotan, Khabomai, Iturup and Kunashir, which Japan calls its northern territories. After World War II, in September 1945, Japan signed the capitulation, and in February 1946, the Kuril Islands were declared territories of the Soviet Union. During the Cold War, Moscow did not recognize the territorial problem, but in October 1993, when Russian president Boris Yeltsin was on an official visit in Japan, the existence of the problem was confirmed officially. However, the two countries have reached no compromise over the dispute yet. Read more