Putin proposes compromise over island disputes with Japan

Russian President Vladimir Putin said here Thursday that Russia would like to find a solution with Japan on the long-standing territorial disputes, but will not trade in territories.

"We don't trade in territories, and Russia would very much like to find a solution to this problem with our Japanese friends," Putin said in an interview with Bloomberg News here on Thursday.

"We're not talking about some exchange or some sale, we are talking about finding a solution where neither of the parties would feel defeated or a loser," Putin said.

Putin made the remarks before meeting on Friday with visiting Japanese Prime Minister Shinzo Abe on the sidelines of a business forum in Vladivostok.

Before his departure for Vladivostok, Abe told reporters: "I hope to make progress on the peace treaty and territorial issues by holding candid and thorough talks with President Putin."

Russia and Japan have not signed a peace treaty formalizing the end of World War II due to a territory row over four small islands in the Pacific -- the Southern Kurils called by Russia and the Northern Territories called by Japan. The decades-old territorial dispute has hindered diplomatic and trade relations between the two countries. Endi