Russian President Vladimir Putin and Japan's Junichiro Koizumi met in St. Petersburg ahead of a Group of Eight summit.
Russia and Japan have so far been unable to sign a peace treaty that would formally end World War II because of a dispute over four islands in the Kuril chain, which the Soviet Union claimed at the end of the war.
At a conference at the Foreign Ministry in June, Putin said, "In relations with Japan, the line toward continuing political dialogue and boosting economic cooperation is completely justified while maintaining a principled approach toward a peace treaty and a sincere desire to see it concluded."
Speaking at a joint news conference after his meeting with Koizumi Saturday, he said: "Contacts are continuing at all levels, including on the toughest issue - a peace treaty. This concerns the governmental, the ministerial and the parliamentary levels."
Automakers Nissan and Toyota are two of the biggest Japanese names currently working in Russia.
