Five Projects in Northern Territory

Prime Minister Shinzo Abe agreed with Russian President Vladimir Putin on five projects for joint economic activity in Northern Territory of Japan, located northeast of Hokkaido Island. While Japan hopes to start the business in the territory under special legislative system, not to approve Russian sovereignty there, Russia does not show any sign of leaving its sovereignty aside. It is likely for Japan to be sucked its money up as experienced in the past.

The leaders agreed on promoting five kinds of businesses: cultivation of sea products, planting vegetables in greenhouse, tourism applicable to the islands, introduction of wind power generation and compacting garbage. Those technologies are unilaterally needed by Russian side. Both governments will make a research in the territory next month. Former Japanese residents in the islands will be able to visit their graves by air for the first time later this month. “Our effort continues to achieve mutual interests,” said Abe in a press conference.

Japanese government has been taking two-track strategy for reaching breakthrough in the negotiation over Northern Territory, which was dual promotion of joint economic activity in the territory and eight kinds of economic cooperation in other places of Russia. Abe administration expects those projects to ease rigid attitude of Russia over the sovereignty of the islands.

However, Russia does not look like satisfied with economic cooperation of Japan. Putin administration expects Japan’s investment in some national projects such as building bridge, digging tunnel, extending pipeline or constructing power supply network. “We can set more flexible condition for Kuril Islands, if we could have a great project such as connecting Hokkaido and Sakhalin with a corridor,” told Russian First Deputy Prime Minister, Igor Shuvalov, in Eastern Economic Forum hosted by Russia.

Russian Prime Minister, Dmitry Medvedev, established special economic district on Japan’s Northern Territory, expecting fast development with foreign investment. It was based on a notion that China or South Korea would be more reliable than Japan for the development there. “We awarded Chinese Deputy Prime Minister, Wang Yang, for friendship,” told Putin in the Forum. “Eighty percent of investment in Far East is by China.”

Abe failed in building special legislative institution for joint economic activity in Northern Territory in the meeting with Putin. News media criticized Abe’s diplomacy to Russia as guaranteeing nothing for the negotiation over the Territory, because they knew well about the results of former economic cooperation with Russia. Abe administration looks like pouring money to the huge continent covered with tundra.