MOSCOW (Sputnik) — Director of the ministry's Third Asian Department Lyudmila Vorobyova said involved Russian government agencies and the Sakhalin Region administration are working on developing "proposals concerning the most promising areas in terms of socio-economic development in the Southern Kurils."
"These are primarily fish breeding, fish processing, infrastructure improvement, geothermal energy, tourism, medicine," Vorobyova said.
On December 15-16, 2016, Putin visited Japan to meet Prime Minister Shinzo Abe. The sides agreed to establish joint economic activities on the islands in order to create favorable conditions for talks on a peace treaty between the countries.
The Kuril Islands are the subject of the long-standing territorial dispute between Russia and Japan. Japan lays claims to Kunashir, Iturup, Shikotan islands and the Habomai group of islets. The territorial dispute has prevented Russia and Japan from signing a peace treaty after World War II.