Moscow: Russian President Vladimir Putin has said Russia would like to find a solution with Japan on the long-standing territorial disputes, but will not trade in territories.
"Russia would very much like to find a solution to this problem with our Japanese friends where neither of the parties would feel defeated or a loser," Xinhua news agency quoted Putin as saying on Thursday.
Putin made the remarks before meeting visiting Japanese Prime Minister Shinzo Abe on the sidelines of a business forum in Vladivostok on Friday.
"I hope to make progress on the peace treaty and territorial issues by holding candid and thorough talks with President Putin," Abe said before leaving for the forum.
Russia and Japan have not signed a peace treaty formalising the end of World War II due to a territory row over four small islands in the Pacific ocean which had hindered diplomatic and trade relations between the two countries.