Economic Special Zone in Northern Territory

Without any progress in sober relationship between Russia and the Western nations after Ukraine Crisis, though, Japan and Russia are working together to improve their bilateral relationship, which does not have peace treaty after the end of World War II. In the meeting between Prime Minister Shinzo Abe and President Vladimir Putin later this month, two top leaders will discuss enhancement of economic ties between two countries. It is speculated that Russia is willing to set special economic zone in Northern Territory of Japan.

Mainichi Shinmbun reported on Monday that diplomatic officials of both governments has been discussing setting special economic zone in Northern Territory, establishing joint venture there or expanding category of Japanese visitors to the Territory from former residents or their families to business persons. Negotiation on those options was encouraged after the meeting of Abe and Putin in Sochi this May and the high level officials have been discussing possible measures.

Hokkaido Shimbun reported on the same day that both governments have been considering visa waiver for the people going between Sakhalin and Hokkaido. Russia requested that measure for expanding people’s exchange for tourism, economy or culture. Russia introduced visa waiver in the relationship with Poland for the people moving over the border between Kaliningrad and Poland, which enable them stay for thirty days beyond the border. Russia has the same agreement with Norway from 2012.

Japan has been reluctant to expanding economic ties in the Northern Territory, being afraid of recognizing Russian sovereignty there. Japanese government has basically been frustrated with current situation that Japanese people cannot visit the Northern Territory without obtaining visa from Russian government. In the negotiation over economic cooperation this year, Japan has been requiring special legal treatment on suspected Japanese person in criminal case in Northern Territory.

Japanese government is worrying about immigrants from Russia, who are related to former communist government. Moreover, improvement in economic cooperation without any progress in negotiation over Northern Territory means diplomatic failure in decades-long history over the issue. For maintaining political momentum, Abe administration is careful on not allowing Russia a cherry pick.

For Japan it is still unclear what would be actual merit of increasing human exchange beyond the border. While some businessmen expect easy transportation to Russia, there are only a few viable businesses in the Eastern-most region of Russia. To risk sovereignty on Northern Territory may weaken diplomatic standpoint of Japan for a long period of time.