“We’re not ceding anything, but we may be ready to some degree to discuss hypothetical situations,” Ushakov said. “That’s all. We’re not ready to give the islands away.” Russia favors a “calm, constructive” dialogue on the Kurils without “inflated expectations and disappointments,” Ushakovsaid.

Ushakov said that the trade volume between Russia and Japan was nearly $29 billion in 2008.

Addition to the nuclear power agreement, five agreements will be signed during Putin’s visit, including two memorandums of understanding between OAO RusHydro and Japanese partners on building hydro- and wind-power plants.

Putin’s delegation will include Moscow Mayor Yury Luzhkov, Energy Minister Sergei Shmatko and business leaders including OAO Gazprom Chief Executive Officer (CEO) Alexei Miller, Sergei Kiriyenko, CEO of Rosatom Corp. and billionaire Oleg Deripaska.