Agreement between Russia and Japan on the status of Sakhalin and the Kuril Islands. |
Japan expressed anger on Thursday after Russia passed a bill into law creating a tariff-free zone on four Russian-controlled islands that Japan claims.
The Russian move came as Tokyo and Moscow were considering a plan to conduct collaborative economic activities on the islands, known in Japan as the Northern Territories and in Russia as the Southern Kurils, without jeopardizing either country's legal status.
"It violates Japan's position on the four islands, as well as the goal of the combined economic activity the two countries are considering. It's a disgrace "At a regular news conference, Chief Cabinet Secretary Hirokazu Matsuno stated that Japan had communicated its position on the situation to Russia.
In September, Russian President Vladimir Putin suggested that Russia was trying to attract international investment to the islands by exempting businesses from critical taxes such as corporation and property taxes.
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