Japanese Prime Minister Yasuo Fukuda met with Russian President Vladimir Putin on Saturday to discuss climate change and a longstanding dispute over a group of Pacific islands. A Japanese official stated that Fukuda would push for Russia to speed up negotiations to settle the territorial disagreement, which has hindered the signing of a peace treaty since the end of World War Two. Putin acknowledged improvements in the relationship between the two countries over the past few years and expressed a commitment to continuing discussions on the peace treaty. Despite a significant increase in bilateral trade, Putin noted that there are still numerous unresolved issues between the two nations. Fukuda is scheduled to hold discussions with Dmitry Medvedev, who is set to be inaugurated as head of state on May 7. Putin, who has served as president for eight years, will continue on as prime minister and leader of the largest party. According to a Japanese foreign ministry official, the primary objectives of Fukuda's visit are to establish a trusting relationship with President Putin and president-elect Medvedev, as well as to prepare for the upcoming G8 summit. These talks will also touch on the territorial dispute over the islands, referred to as the Southern Kuriles in Russia and the Northern Territories in Japan, which were taken by Soviet troops at the end of World War Two. The islands are situated just north of Hokkaido, where Japan will host this year's G8 summit. Japan is prioritizing the search for a more efficient alternative to the Kyoto Protocol on climate change, which will expire in 2012, at the top of the agenda for the summit. Tokyo is aiming for the G8 summit to aid in creating a climate change agreement that includes major polluters like the United States, China, and India, none of which are currently bound by the restrictions of the Kyoto Protocol. Russia, a G8 member, was one of the largest developing economies to adhere to the Kyoto commitments. Japanese officials are optimistic that Moscow will back a new agreement in Hokkaido. A senior Japanese government official stated that Prime Minister Fukuda will encourage Russian leaders to speed up discussions in order to resolve the territorial dispute. The official also mentioned that Fukuda is likely to emphasize the necessity of advancing negotiations in a specific manner to improve the relationship between the two countries. Despite Russia's willingness to engage in talks about the issue, they have not shown any indication of being willing to relinquish control of the islands. A Kremlin official stated that they do not anticipate any significant progress in the talks with Fukuda. In 2007, the trade between Russia and Japan amounted to $20 billion, driven primarily by automakers like Toyota Motor Corp establishing factories in Russia to cater to the growing market. Despite this significant trade volume, it is still much smaller compared to the trade between Russia and its main trading partner, the European Union. Japanese companies have also invested in large oil and gas projects on Russia's Pacific Sakhalin island, and there is currently a pipeline being built to transport oil from eastern Siberia to the Pacific coast in the future.