E  The Russian Federation, Central Asia, and the Caucasus

   With the economy in Russia robust as a result of high crude oil prices, the Putin administration maintained a stable political base. Domestically, Russia promoted reform of its social system based on its “Priority National Projects.” (*4) In the realm of foreign policy, Russia successfully hosted its first G8 summit and also strengthened its relationships with many countries, including some in Asia.

   In Japan-Russia relations, private-sector economic relations deepened to a level never seen before, while intergovernmental relations developed further through active dialogue. The heads of state held frequent telephone dialogues, as did the Foreign Ministers. Japan and Russia also utilized international meetings, including the G8 summit, to hold direct bilateral talks. The first dialogue between Prime Minister Abe and President Putin was held on the occasion of the APEC Summit in November. At that time, the leaders agreed on further development of cooperation between the two countries across a broad range of fields based on the “Japan-Russia Action Plan.” (*5)

   International interest in the countries of Central Asia and the Caucasus (*6) has been growing in light of the abundant energy resources in the area surrounding the Caspian Sea as well as these countries' geopolitical position at the center of Eurasia. Japan held in Tokyo the Second Foreign Ministers' Meeting of the “Central Asia plus Japan” Dialogue, a dialogue launched in August 2004, and Prime Minister Koizumi visited Central Asia, becoming the first Japanese Prime Minister in history to visit the region. Furthermore, Foreign Minister Aso demonstrated a proactive stance towards promoting diplomacy with Central Asia through the policy speeches he delivered in June and November.