29.07 Japan Rejects Russian Proposal on Disputed Islands - Agency

MOSCOW, July 29 (RIA Novosti) - Japan has rejected Russias proposal to engage in joint projects in the disputed Kuril Islands, the Kyodo news agency said on Sunday citing diplomatic sources.

According to the information, obtained by the agency, Russian Deputy Foreign Minister Igor Morgulov told his Japanese counterpart Masaji Matsuyama during their meeting in St. Petersburg in June that the two states could carry out major infrastructure and energy projects on the islands, which Japan calls its Northern Territories.

The projects will be carried out on the basis of the Russian legislation, the Russian diplomat said.

Tokyo is reluctant to accept the proposal because it would mean recognizing Russian sovereignty over the islands and undermine Japans claim, Kyodo quoted unnamed senior diplomats as saying.