NEMURO, Japan — In the northern fishing town of Nemuro, the ongoing territorial dispute between Japan and Russia over a nearby chain of islands remains a daily reality, shaping the local economy and community sentiment. The islands, known in Japan as the Northern Territories and in Russia as the southern Kuril Islands, have been contested since 1945, when Soviet forces seized them in the closing days of World War II.

Nemuro, situated on Japan’s northernmost main island of Hokkaido, lies just a few miles from the southernmost points of the disputed archipelago. The town, with a population of about 22,000, has historically supported Japan’s claims to the islands through public campaigns, museums, and monuments. Yet Nemuro’s economy is heavily intertwined with Russia due to trade and fishing rights, a connection that has grown more precarious amid deteriorating relations between the two countries.

In recent months, tensions escalated when Russian President Vladimir Putin made a surprise visit to the islands—his first in 25 years—highlighting Russia’s firm stance on its control of the territory. During the visit, Mr. Putin toured a seafood-processing plant and met with locals, projecting Russian sovereignty. Tokyo swiftly condemned the move, describing it as “absolutely unacceptable” and a blow to Japanese public sentiment. Japan’s Prime Minister Sanae Takaichi has criticized the visit and Russia’s ongoing presence, particularly in the context of sanctions imposed on Moscow following its 2022 invasion of Ukraine.

For Nemuro’s residents, the dispute is more than a geopolitical contest. Mayor Masatoshi Ishigaki expressed concern that heightened tensions could harm local livelihoods, which rely on cross-border trade and fishing. Over recent years, Russian-imposed limits on fishery resources and a decline in Russian visitors have contributed to economic challenges. Once bustling with Russian sailors and tourists, Nemuro now sees far fewer, impacting businesses such as restaurants and seafood processors.

Despite its economic reliance on Russia, Nemuro remains a focal point of Japan’s efforts to reclaim the islands. The town hosts nationalistic rallies and maintains museums displaying historical documents and maps to affirm Japan’s claims, which date back centuries. However, the population advocating for these claims is aging, with about 4,700 surviving former island residents in Japan, down from some 17,000 expelled after World War II.

Elder residents like Hiroshi Tokunou, who was displaced from the islands as a child, maintain a cautious perspective on the dispute. While he acknowledges Russian diplomatic tactics, he urges Japan to stay firm yet leave room for future reconciliation. Younger residents in Nemuro, however, often prioritize economic and social issues over the island dispute, reflecting a generational shift in attitudes.

Ceremonial ties to the islands persist despite diplomatic strains. Each year, Nemuro’s community holds rituals to honor ancestors buried on the islands. These ceremonies, once held on the islands with Russian approval, are now conducted at sea after Russia suspended visitation rights following Japan’s sanctions in 2022.

As Nemuro navigates its complex position between historical grievance and current economic realities, local leaders emphasize the urgency of resolving the dispute. Mayor Ishigaki estimates that regaining control of the islands could generate more than $460 million annually for the region through fisheries and processing industries. However, analysts note that Russia’s recent posture indicates it may use increased pressure rather than reciprocal concessions to maintain its hold.

For many in Nemuro, the Northern Territories remain a deeply emotional issue intertwined with identity, memory, and livelihood—a reminder of unresolved conflicts that continue to shape regional dynamics decades after the war’s end.