Hoping to break a decades-old stalemate in a row with Russia over ownership of a string of islands off Hokkaido, Prime Minister Shinzo Abe has taken a new tack.

He has proposed an economic cooperation package including joint development of the disputed territory.

The move is out of step with the Group of Seven policy of imposing sanctions over Moscow's annexation of Crimea in 2014. The package, worth ¥300 billion ($2.6 billion), was welcomed by Russian President Vladimir Putin at his summit with Abe in Japan earlier this month.