The world is getting realigned. The foundation of super power shifts from military power to economic might. Russia, formerly the Soviet Union, and Japan are not the exception. The adversaries of the pre and the post world war-II are inclined to have friendly relations. Both are required to sign Peace Treaty. The stumbling blocks have so far neutralised the efforts. Both countries have rich background of relations at the people-to-people level. Bolshevik Revolution in 1917 followed by a civil war in Russia caused migration of about one million people to the different countries including Japan. Nikolai Matveev and Mikhail Grigoryev made significant contribution to the Japanese culture. The father of former, Matveev migrated to Japan. Nikolai Matveev was first Russian who took birth in Hokkaido in 1865 in Japan. His mother was Japanese. But this people level contacts failed to solve outstanding issue of islands between Japan and Russia. Both the countries signed Treaty of Commerce, Navigation and Delimitation on 7th February, 1855. It confirmed the boundary between the islands of Etorofu and Uruppu. Japan claims that the Northern Territories also known as Kurile islands, consisting of four islands of Etorofu, Kunahsiri, Shikotan and Habomai, are an inherent part of its territory, which have never been held by foreign countries. Japan agreed to take islands located in southern leaving claim on others. It also proposed to develop joint mechanism of the region for solving the problem. But the dispute is still unresolved. The Soviet Union and Japan viewed themselves as rising powers in last part of the 1930s. They wanted to expand their territorial suzerainty. In 1935, Japan and Germany signed Anticomintern Pact which created the Axis Powers. Skirmishes took place between Russia and Japan in Manchuria. However, Japan and the Soviet Union signed Non-Aggression Pact in 1941. Yalta Conference was held in February 1945. It was a second meeting between the Heads of government of the U.K, the U.S and the Soviet Union. They demanded Germany’s unconditional surrender. The Soviet Premier entered the war against Japan aimed at getting back islands lost to Japan in the war between the two countries in 1904-05. In the wake of the Bolshevik Revolution and the Russian Civil War in 1917, about one million Russians migrated to different countries including Japan. Nikolai Matveev and Mikhail Grigoryev made significant contributions to Japanese culture. The father of former, Matveev migrated to Japan. Nikolai Matveev was first Russian who took birth in Hokkaido in 1865 in Japan. His mother was Japanese Japan and the Soviet Union signed a Neutrality Pact on 13th April, 1941. Before that, border war took place between the two countries in 1939. The Axis Powers defeated France in 1940. After that defeat the Soviet Union wanted to improve its relations with the countries of Far East. Signing of Neutrality Pact with Japan was result of these Soviet efforts. However, the Soviet Union denounced the Pact on 5th April, 1945. Russia declared, after two days of US bombing of Hiroshima, war on Japan on 8th August 1945. After one day the US bombed another city of Japan, Nagasaki on 9th August 1945. After five days, Japan surrendered and the Soviet Union landed its forces on southern Kurile Islands. San Francisco Treaty was signed in 1951. Japan renounced the “all right, title and claim to the Kurile islands. Russia did not sign the Treaty, thus, the claim, according to a few analysts, of Russian ownership is questionable. The islands are strategically important for Russia. These are located on the Pacific Ocean from Japanese island of Hokkaido and Russia’s Kamchtaka peninsula. These islands have off shore oil and gas deposits. The rich fishing opportunities are available surround the islands. Fishery is main source of income. Russia wants to first examine possible impact of Peace Treaty on alliance arrangement and commitment with the U.S and other countries then to sign the treaty. The dispute on the islands is main hurdle in the peace treaty between the two countries. Japan said that issue of southern islands must be settled before signing a peace treaty. The Russian government insists that both are separate issues. It claimed its occupation of the islands is legitimate. Japan and Russia have signed number of treaties after the World War-II. Both the countries signed Joint Declaration in 1956. The clause 1 of the Japan-Soviet Joint Declaration provides, ‘the Union of Soviet Socialist Republic and Japan shall cease on the date on which this Declaration enters into force and peace, friendship and good neighbourly relations between them shall be restored’. Its Clause 2 provides, ‘Diplomatic and Consular relations shall be restored between the Union of Soviet Socialist Republic and Japan’. Thus, the diplomatic relations were established between the two countries. Clause 3 (a) of the Treaty provides, ‘to settle their international disputes by peaceful means in such a manner that international peace and security and justice are not endangered’. The signatories have not fought any major war, after the World War II, which might have endangered the world peace. However, Japan opposed the Soviet expansionism in Afghanistan in 1979.Clause 9 of the Declaration provides, ‘the Union of Soviet Socialist Republic and Japan agree to continue, after the restoration of normal diplomatic relations between the Union of Soviet Socialist Republics and Japan negotiations for the conclusion of peace treaty’. The other major treaties are Income Tax Treaty signed in 1986 and etc. On 7th September 2017 new Income Tax Treaty was signed to replace the earlier one. Nuclear non-Proliferation Treaty was signed in July 1968. Both are signatories to the treaty. Russia signed in 1968 and Japan acceded to the treaty in 1970. Despite the dispute on the islands, both the countries enjoy good bilateral relations. Japan and Russia are making efforts to further strengthen trade relations. Japan is investing on Russian infrastructure as Russian oil is important for it. Probably Japan wants to increase its dependence on Russian oil. Both the countries are working to establish ‘green corridor’ aimed at simplifying customs procedure and boasting trade. The trade between the two countries reached at record level of 34.8 billion US dollars in 2013. From December, 2016 to December, 2017 export from Russia to Japan reached at 11.5 billion US dollars. Main items of trade were animal products, vegetable products, mineral products, vessels, aircraft, arms and ammunition, textiles and its articles, wood and its articles and products of the chemical or allied industries. Japan exported to Russia amounted to 7.8 billion US dollars or 5.2 percent of its overall imports in 2017. The export articles include dairy, eggs, honey, vehicles, machinery, electronic equipments, steel products, sea food, furniture, cement, stone, and Sulphur etc. Both the countries are also in cooperation in various fields. These include security, human exchange, energy, training and sports etc. A summit meeting between Japan and Russia was held on 10th November, 2017 on the sidelines of Asia Pacific Economic Cooperation Economic Leaders’ meeting in Da Nang, Vietnam. Both the leaders agreed on shaping two projects on the islands without harming the legal position of either side. They expressed their confirmation on field survey for conducting joint economic activities on the islands. On 16th February, 2018 the foreign ministers of both the countries held meeting. The Japanese foreign minister expressed concerns on designation of airport on Etorofu Island for civilian and military purposes and conducting of military exercise to nab terrorism on Kunahsiri island and protested that such acts are against Japanese stance on the islands. The next summit meeting is expected to hold in May, 2018 when Saint Petersburg International Economic Forum is scheduled to be held. Japan will participate as a guest country. Peace treaty, military build up on the islands, trade and economic cooperation, matters relating to North Korea and nuclear armament may dominate the agenda of the summit. This meeting will be held in environment when North Korea and the United States have expressed their willingness to go for talks. The Democratic Peoples Republic of North Korea is embarked upon nuclear armament. It has created tension in the Korean peninsula and South China sea In a summit meeting held on 7th September 2017, both the leaders expressed their recognition that North Korea’s nuclear test on 3rd September was a serious threat to the peace and stability of the Korean peninsula and the region. Russia and Japan issued joint road map for peace in the Korean peninsula. The Japanese Prime Minister invited Russia to play greater role in the implementation of the resolutions passed by the United Nations Security Council on the nuclear armament of North Korea. The restoration of the peace on the peninsula will be in the interests of the countries directly or indirectly concerned to it. Firstly, it will ensure smooth sailing of ships carrying oil through the South China Sea and other sea roots of the Pacific Ocean. Secondly, the peace in the Korean peninsula may create more closeness in the countries of Far East and South East Asia. Subsequently, it may strengthen the concept of Peaceful Asia. Thirdly, the players of South Korea and North Korea participated in Winter Olympic Games 2018 under one flag. This was big development in the bilateral relations of the two countries. South Korea opposes North Korean policies of nucealrisation etc. It is in the U.S camp. It may lead to the merger in one Korea as was witnessed in case of Germany in 1991. Fourthly, it may reduce the competition between the different powers on Korean peninsula which will benefit to all the stakeholders. Fifthly, North Korea and the U.S have expressed their desire to normalise strained relations. It is expected that summit may be held between the Head of Governments of the two countries in May 2018. It will certainly benefit the peace efforts in the peninsula. Lastly, the trade may get boost which will benefit Japan and Russia. Peace, prosperity, political stability and availability of natural resources to all countries for the utilisation must be ultimate goals of mankind. The countries must resolve their outstanding issues amicably in the interest of the world community. The writer is an author and has a doctorate in Political Science Published in Daily Times, March 27th 2018.