Joint Project on Disputed Island

Based on an agreement between top leaders of Japan and Russia, the Japanese delegation of governmental staffs and businessmen made a research in Northern Territory, the claimed islands occupied by Russia after the World War II, for joint economic activity. What they found in their five-day trip was “great possibility” for joint projects. It is still a big question whether they can clear legal obstacles over the territory.

Prime Minister Shinzo Abe agreed with Russian President Vladimir Putin on starting discussion over joint economic activities in Northern Islands last December. While Abe hopes to lead the project to settlement of territorial dispute over the territory and finalizing negotiation for bilateral peace treaty, Putin looks to see it a genuine business project of introducing foreign investment from one of the nations that are interested in those islands.

The Japanese delegation, headed by Advisor for Prime Minister, Eiichi Hasegawa, consisted of thirty-two businessmen mainly in Hokkaido and local leaders in the region close to the territory. One possibility is cooperation in fishery business. Japanese fishermen have advanced skill and technology to catch, land, store and sell sea products. If both countries agree on joint project over rich resources around Northern Territory, it will be a profitable business for the fishermen in the region. “Our voices can be heard in the process for joint economic activity,” told a member of the delegation and the leader of a fishery cooperative in Nemuro city, Tosiji Takahashi.

Tourism is another hope. Northern Territory has rich natural environment, which can be a good resource of tourism. Hokkaido, that includes Northern Territory in its administrative area, is popular for foreign tourists with its rich natural environment and fresh foods. Northern Islands have the same potential as Hokkaido. A resort developer in Hokkaido, Kimihito Kamori, was requested investment for building a hotel in Etorofu Island by a Russian businessman. “If they construct advanced fog-proof airport, we will be more positive in sending travel tours,” told Kamori.

Russian government recognizes that every possible project will be done under Russian sovereignty. “Once that joint economic activity is begun, we will be able to support it with offering land or prioritized taxation under current legislation in Russia,” told Governor of Sakhalin, Oleg Kozhemyako. Ministry for Foreign Affairs of Japan firmly maintains Japan’s standpoint that Northern Territory is inherited territory of Japan. Economic activity under Russian law will undermine that principle. Legal framework will be the most controversial point for the project.