TOKYO: The Japanese government has lodged a strong protest with Moscow over the approval of a new law offering tax breaks to companies that invest in four Russian-controlled islands claimed by Tokyo.
Expressing regret over the move, Chief Cabinet Secretary Hirokazu Matsuno said Tokyo had conveyed its concerns to Moscow. “The move goes against Japan’s position,” he added.
It is pertinent to mention here that Japan calls the four islands controlled by Russia the Northern Territories.
He argued that the introduction of preferential tax systems based on Russian law for the economic development of the region and inviting Japanese and other companies goes against Japan’s position.
The chief cabinet secretary said the move could damage the goals of joint economic activities between Japan and Russia.
“Moscow introduced the preferential tax measures despite the fact that Japan repeatedly conveyed its position on the four Russian-controlled islands,” he added.
According to the Japanese government, all four islands were illegally occupied after World War II.