Japan and Russia agreed Saturday to step up economic and trade cooperation by creating a commission on promoting bilateral trade and investment, a Foreign Ministry official said.

Foreign Minister Makiko Tanaka and visiting Russian Deputy Prime Minister Viktor Khristenko exchanged notes on economic cooperation after delegations from the two nations met at the Foreign Ministry's Iikura Guesthouse in Tokyo.

The two countries agreed to set up a trade and investment promotion commission in the first half of next year, when Prime Minister Mikhail Kasyanov is expected to visit Japan. Before that visit, Russian Foreign Minister Igor Ivanov and Tanaka are expected to visit each other's countries.

Specifically, the two countries will strengthen cooperation in the energy sector, including nuclear energy, space development and reduction of greenhouse gas emissions, the official said.

Khristenko said Russia has been working on reform measures, including improving transparency and tax reform, and asked Japan to ease conditions on loans and trade insurance, according to the official.

Tanaka replied that while Tokyo recognizes that Russia's investment environment has improved, Japan expects further reform on the legal and taxation systems so that more Japanese businesses are encouraged to invest there.