Russian president Vladimir Putin and Japanese prime minister Shinzo Abe have discussed joint economic projects on disputed islands which could pave the way for the countries to finally sign a peace treaty.

A POWERFUL undersea earthquake prompted tsunami warnings yesterday for Japan and Russia but the danger appeared to pass after a series of tiny waves hit the northern Japanese coast.

Japan issued a tsunami alert today and told Pacific coast residents to flee to higher ground after a powerful earthquake hit off sparsely populated islands between northern Japan and the Russian Far East.

Japan’s prime minister today said he couldn’t understand why Russia will not consider returning four disputed islands to Japan, escalating a territorial row that has prevented the two sides from formally ending Second World War hostilities.

A strong earthquake has shaken northern Japan, but there were no reports of damage or injuries.