“I believe there are a wide range of areas where Japan and Russia have not exercised our fullest potential, despite the fact that we are neighbouring nations,” Mr Abe said.
Mr Putin said business ties were a way to build confidence.
“Our work together on the economic front will help us create a foundation to improve relations,” he said.
Local media reported Japan was expected to agree to provide an economic package worth about 300 billion yen ($2.5 billion), including private sector projects in areas such as mining, and loans for natural gas exploration and economic development in Russia’s Far East.
The Soviet Union seized four islands off Japan’s northern coast in 1945 in the closing days of the war.
