The article analyzes the Russo-Japanese peace treaty negotiations in 2013-2019.  Despite  the  rapprochement  in  the  trade,  economic,  political  and  hu-manitarian spheres, the territorial dispute remains an obstacle, significantly complicating bilateral ties. There remain disagreements on the sovereignty over  the  southern  Kuril  Islands,  on  acceptable  conditions  for  resolving  a  territorial dispute, as well as on the significance of the territorial dispute for the development of bilateral relations. The plans for the implementation of joint economic activities on the southern Kuril Islands are also analyzed. It is concluded that Russia and Japan need to continue to build upon the result of rapprochement initiated by the leaders of the countries and continue ne-gotiations on the peace treaty that will upgrade their relations.