Tensions between Russia and Japan increased in July 2012, when Russian Prime Minister Medvedev visited the Kuril Islands for a second time.
In 2011 Russia announced it was boosting military defences on the islands. However tensions reduced after the 2011 earthquake in Japan and the ensuing nuclear accident - a disaster which prompted expressions of solidarity in Russia.
Chances of an early resolution to the dispute look slim. Natural resources are part of the reason. The islands are surrounded by rich fishing grounds and are thought to have offshore reserves of oil and gas. Rare rhenium deposits have been found on the Kudriavy volcano on Iturup. Tourism is also a potential source of income, as the islands have several volcanoes and a variety of birdlife.For a complete understanding read: http://www.bbc.co.uk/news/world-asia-pacific-11664434
Sources:
1. http://en.wikipedia.org/wiki/Kuril_Islands_dispute
2. http://www.bbc.co.uk/news/world-asia-18688388
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