Japanese Prime Minister Yasuo Fukuda met with Russian President Vladimir Putin on Saturday to discuss important topics such as climate change and a long-standing dispute over a group of Pacific islands. A high-ranking Japanese official stated that Fukuda plans to push Russia to speed up negotiations to settle the territorial dispute concerning the islands, which has been a major issue preventing the two countries from signing a peace treaty to officially end World War Two. Putin acknowledged the progress made in improving relations between the two countries over the past few years and expressed his commitment to continuing discussions on the peace treaty. He also mentioned that while bilateral trade has increased significantly, there are still many unresolved issues that need to be addressed. Fukuda is scheduled to have discussions with Dmitry Medvedev, who will become head of state on May 7, later on. Putin, who has served as president for eight years, will transition to the role of prime minister and leader of the largest party. The primary goals of Fukuda's visit are to establish a trusting relationship with President Putin and president-elect Medvedev, and to prepare for the upcoming G8 summit, according to a Japanese foreign ministry official. The islands, referred to as the Southern Kuriles in Russia and the Northern Territories in Japan, were taken by Soviet troops at the end of World War Two. They are located just north of the Japanese island of Hokkaido, where this year's Group of Eight summit will be held. Japan is prioritizing the search for a better alternative to the Kyoto Protocol on climate change, which will expire in 2012, at the upcoming summit. Tokyo aims to create a new climate change agreement that includes major polluters like the United States, China, and India, who have not signed the Kyoto Protocol. Russia, a G8 member and one of the largest emerging economies, has agreed to the Kyoto commitments. Japanese officials are optimistic that Russia will also support a new agreement in Hokkaido. A senior official from the Japanese government stated that Prime Minister Fukuda will encourage Russian leaders to speed up discussions to resolve the territorial dispute. Fukuda is anticipated to emphasize the importance of advancing negotiations in a practical manner to improve the relationship between the two countries. Although Russia has expressed willingness to discuss the issue, they have not shown any indication of being willing to relinquish control of the islands. A Kremlin official stated that their position remains unchanged and they do not anticipate any major progress in the talks with Fukuda. In 2007, the trade between Russia and Japan reached $20 billion, driven by companies like Toyota Motor Corp establishing factories in Russia to take advantage of its growing market. Despite this growth, trade between Russia and the European Union remains much larger. Japanese companies have also invested in major oil and gas projects on Russia's Sakhalin island, with a pipeline being built to transport oil from eastern Siberia to the Pacific coast in the future.