Russian President Dmitry Medvedev visited an island outpost seized by Russia from Japan at the end of World War Two stirring a diplomatic row with Tokyo, which demands their return.
Medvedev's visit to the island, one of four known as the Southern Kuriles in Russia and the Northern Territories in Japan, was likely to sour relations ahead of an Asia-Pacific leaders summit that Japan will host in mid-November.
With the power balance in the Far East shifting against Russia, I'd thnk that at some point, Russia will need Japan's help with some problem. When that happens, Japan should be ready to make a deal to get back their territory as the price of giving Russia that help.
UPDATE: Japan takes a traditional step in retaliation:
Japan said on Tuesday it was recalling its ambassador to Moscow temporarily after Russian President Dmitry Medvedev visited a disputed island, raising the stakes in a territorial row.This is another traditional response. Athough this isn't recommended as long as Russia has nukes and Japan does not.