A key infrastructure project seen as a symbol of bilateral economic cooperation with Russia has taken an unexpected turn as a Japanese consortium failed to win support for building a new airport terminal in the Russian Far East, sources from both countries with knowledge of the process said Wednesday.

The modernization of Khabarovsk Novy Airport is among the projects meant to deepen joint cooperation in eight areas, which were agreed on by Prime Minister Shinzo Abe and Russian President Vladimir Putin in 2016. Abe has been seeking to leverage stronger economic ties to make a breakthrough in a long-standing territorial dispute over Russian-held islands off Hokkaido.

Instead, a Turkish consortium began building the domestic terminal of the airport in March, without participation from Japan, the sources said.