Japanese Prime Minister Yasuo Fukuda met with Russian President Vladimir Putin on Saturday to discuss climate change and a long-standing dispute over a group of Pacific islands. A senior Japanese official mentioned that Fukuda plans to push Russia to speed up negotiations to resolve the territorial disagreement, which has hindered the signing of a peace treaty ending World War Two. Putin acknowledged the progress in their relations over the past few years and expressed commitment to continuing dialogue on the peace treaty. He also noted that bilateral trade has increased significantly, but there are still many issues that need to be addressed. Fukuda is scheduled to hold discussions with Dmitry Medvedev, who will be inaugurated as the head of state on May 7, later on. Despite stepping down as president after eight years, Putin will continue to serve as prime minister and leader of the largest political party. A Japanese foreign ministry official stated that Fukuda's primary objectives for the visit are to build a trusting relationship with President Putin and president-elect Medvedev and to prepare for the upcoming G8 summit. The disputed islands, known as the Southern Kuriles in Russia and the Northern Territories in Japan, were occupied by Soviet forces in the final days of World War II. These islands are located just north of Hokkaido, where Japan will host this year's Group of Eight summit. Japan is prioritizing the search for a more efficient alternative to the Kyoto Protocol on climate change, which will end in 2012, at the forefront of the summit agenda. Tokyo aims for the G8 summit to assist in creating a climate change agreement that would involve major polluters like the United States, China, and India, none of which have agreed to the Kyoto Protocol's emission restrictions. Russia, a G8 nation, was among the significant developing economies that agreed to the Kyoto commitments. Japanese authorities are optimistic that Moscow will back a follow-up agreement in Hokkaido. A senior Japanese government official stated that Prime Minister Fukuda will encourage Russian leaders to speed up discussions aimed at resolving the territorial dispute. The official mentioned that Fukuda is likely to emphasize the importance of advancing negotiations in a concrete manner to improve bilateral relations. Despite Russia expressing willingness to discuss the issue, they have shown no intention of relinquishing the islands. A Kremlin official stated that their stance remains unchanged and they do not anticipate any major progress in the talks with Fukuda. In 2007, trade between Russia and Japan reached a value of $20 billion, driven by companies like Toyota Motor Corp establishing factories to access the growing Russian market. However, this trade volume is significantly lower compared to Russia's trade with the European Union. Japanese companies have invested in large oil and gas projects on Sakhalin island in Russia's Pacific region, and there is ongoing construction of a pipeline to transport oil from eastern Siberia to the Pacific coast.