The Russian government has announced plans to begin registering companies next year on plans to introduce tariff-exempt areas in the Northern Territories.
Corporate tax and real estate tax are also exempted for up to 20 years.
The Japanese side "is incompatible with the purpose of joint economic activities."
At a meeting held on the 26th, the Russian government took up the agenda of preparations for the introduction of tariff-exempt areas on the islands, including the Northern Territories.
In this, Finance Minister Siluanov announced that he would proceed with legislation and start registering companies wishing to enter the market next year.
In addition to the unprecedented preferential treatment, corporate tax and real estate tax will be exempted for up to 20 years from registration, and the system will continue until 2046.
President Putin announced in September that he would introduce an area exempt from tariffs from foreign companies, including Japan, in the Northern Territories, and last month two deputy prime ministers visited Iturup Island to discuss the local situation. The Russian government is rushing to prepare for the tour.
On the other hand, the Japanese side has so far stated that it is incompatible with the purpose of joint economic activities conducted in a way that does not harm the legal position of both Japan and Russia.