Japanese Prime Minister Shinzo Abe and his South Korean counterpart Lee Nak-yeon have also marked their presence at the Eastern Economic Forum (EEF), which Mr. Putin is hosting. "We have been negotiating for 70 years", Putin said.
In September, 1951, the Soviet Union refused to sign the Peace Treaty of San Francisco with Japan.
Russian strongman Vladimir Putin and China's Xi Jinping buttered each other up Tuesday - tossing pancakes on the sidelines of an economic forum.
In a sudden about turn, Russia's President suggested that a historic peace deal "without any preconditions" could be signed by the end of the year.
Japan is "already involved" in a LNG project in the Irkutsk region, Putin said. "At present, nothing has been decided regarding a Japan-North Korea summit meeting, but if we are going to have one, then I am resolved". "[So, ] let's conclude a peace agreement by year's end without any preconditions", Putin said at a media briefing.
"Let us walk together mindful of the questions, 'If we don't do it now, then when?' And 'if we don't do it, then who will?'", Abe said. "We are both fully aware that it will not be easy".
Some diplomats said Putin's proposal was a non-starter.
Still, a former Russian Deputy Foreign Minister, Georgy Kunadze, felt this could be political posturing from Putin. "This stance hasn't changed".
"This is called trolling".
Prime Minister Lee thanked President Putin for Russia's support towards establishing permanent peace and denuclearization on the Korean Peninsula, and said that the South Korean government was doing its best to implement what was agreed in June, between Presidents Moon Jae-in and Putin, including the "nine bridges" of cooperation between South Korea and Russian Federation.
Alexander Gabuev, head of the Russian Federation in the Asia-Pacific programme at the Carnegie Moscow Centre, suggested Putin's seemingly off-the-cuff proposal was a sign of frustration at the dearth of Japanese investment.