Kuril islands, strategic chain at heart of Russia-Japan dispute Rich in minerals and fish and strategic for Russia's navy, the Kuril islands are the subject of a decades-long territorial dispute between Moscow and Tokyo that has prevented them ever signing a World War II peace treaty.The islands' current population is less than 17,000 people and the greatest value of the islands lies in their geographical location at the meeting of warm and cool water currents, which is beneficial for fisheries. IMAGES AND SOUNDBITES.