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Mr Putin and Mr Koizumi held talks, which started with restricted attendance, but later involved the two countries’ delegations.

The consultations focused on the prospects for developing Russian-Japanese political, economic and humanitarian partnership. It was agreed to step up cooperation within joint projects in exploration and transportation of energy and mineral resources of Siberia and the Far East. The Russian side expressed concern about the decrease in bilateral trade over the last year.

The Russian President and the Japanese Prime Minister exchanged opinions on the problem of a peace treaty and confirmed their intention to hold active negotiations and sign an agreement on the South Kuril islands, Iturup, Kunashir, Shikotan and Habomai, as soon as possible, and thus to achieve complete normalisation of bilateral relations.

The two leaders discussed a wide range of regional and international problems, in particular, the fight against international terrorism, global security, coordination of joint efforts in Afghanistan, and the Iraq problem.

They also focused on the situation on the Korean Peninsula in connection with North Korea’s decision to withdraw from the Treaty on the Non-Proliferation of Nuclear Weapons. The Russian President said Moscow’s stance on North Korea preserving non-nuclear status and the strengthening of non-proliferation regime remained unchanged. Mr Koizumi expressed his concern about the position of the North Korean leadership, and said about his intention to make Pyongyang take steps to abandon its nuclear programme. The Russian President and the Japanese Prime Minister were unanimous that the problem had to be settled through negotiations with all the concerned parties of the inter-Korean dialogue as soon as possible.

Following the talks, Mr Putin and Mr Koizumi signed a joint statement and adopted a Russian-Japanese plan of action, which reflected the main results of the task set in 1998 on building a constructive partnership. The plan stipulates stepping up efforts in promoting a political dialogue, peace treaty talks, international cooperation, trade and economic partnership, developing contacts in law-enforcement and defence, and increasing cultural and humanitarian exchanges.

Following the summit, the leaders of the two countries held a news conference. In the evening a reception in honour of the Japanese Prime Minister was held in the Grand Kremlin Palace.