Trade minister Hiroshige Seko said a final decision on the projects is up to Prime Minister Shinzo Abe, who is to meet with Russian President Vladimir Putin in Japan later this week.
A dispute over the southern Kuril islands, which Japan calls the Northern Territories, has kept the two countries from signing a peace treaty formally ending their World War II hostilities. The Soviet Union seized them in the war's final days.
Seko said economic cooperation is progressing well, with preparations for the projects drawing together officials from the trade ministry as well as other areas such as agriculture, health, land and infrastructure.
Stronger economic ties could improve the political relationship, creating a positive cycle that eventually leads to a breakthrough in the dispute between the two sides, he said.
"We will have a win-win situation, at least in economic relations. We are not just giving things away to Russia," Seko said. "Our projects are not for Russia to just eat and run."
None of the planned projects involve the disputed islands, apparently to separate business from politics. Seko said the outcome of Abe's talks with Putin is unpredictable. Abe has invited Putin to a secluded hot springs resort in Yamaguchi prefecture, his home state in western Japan, for talks in a quiet atmosphere on Thursday. They will move to Tokyo on Friday for more talks.
Russian Foreign Minister Sergei Lavrov said recently that Moscow sees progress in economic ties as a key condition for success in talks on the disputed islands.
They also serve as a strategic vantage point for the Russian military.
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