Japan and Russia have agreed to set up a task force to jointly develop tourism and four other businesses on disputed islands controlled by Moscow but claimed by Tokyo, a Japanese government official said Tuesday.

Tokyo hopes joint economic projects will pave the way for settling a decades-old territorial row with Russia, while Moscow aims to attract Japanese investment to the underdeveloped islets off Hokkaido.

The first meeting of the task force is expected to be held early next year between Japan and the State of Sakhalin to advance the joint businesses, which also include projects involving aquaculture, greenhouse farming, wind power and waste reduction. Sakhalin administers the contested isles.