Russian President Dmitry Medvedev on Friday said Japan should realise Moscow would not give up disputed Pacific islands, proposing instead to consider creating a free economic zone there. "All the South Kuril Islands are Russia's territory," Medvedev said in a live end-of-the-year television interview.
"That's our land, we should take all appropriate decisions there, we should rebuild the Kurils, do everything that people live like humans there. I personally promised them this." Medvedev caused an uproar in November when he became the first Russian leader to visit one of the disputed islands known as Kunashir in Russian and Kunashiri in Japanese.
The visit caused the worst diplomatic crisis in bilateral ties in years and became the subject of talks with Kan last month in Japan. The row has prevented Russia and Japan from signing a peace treaty to formally end World War II hostilities, impeding the development of ties - and the islands - to their full potential. Home to some 19,000 people, the islands are rich in gold and silver and lie in waters abundant in marine life.
The islands' infrastructure however is crumbling or nearly non-existent and most Russian residents eke out a meager living there. Medvedev said that Russia and Japan could consider pursuing joint economic projects at the disputed islands, in his most detailed comments yet on his vision for the remote archipelago. "Nothing brings us closer than joint economic projects." "We can think about the creation of a single economic zone, a free trade zone, everyone would earn money there, there would be a special micro economic climate there," he said.