Russia’s foreign ministry has said it is suspending an agreement with Japan that allowed Japanese fishermen to fish near the disputed Southern Kuril islands, accusing Tokyo of failing to make payments required under the deal.

“In the current situation, we are forced to suspend the implementation of the 1998 Agreement until the Japanese side fulfils all its financial obligations,” Russian foreign ministry spokeswoman Maria Zakharova said in a statement on Tuesday.

The four islands at the centre of the dispute between Moscow and Tokyo are located to the southeast of the Russian island of Sakhalin and are administratively part of the same region.

Strategically, control of the islands ensures Russia has year-round access to the Pacific Ocean for its Pacific Fleet of warships and submarines based in Vladivostok, as the strait between the islands of Kunashir and Iturup does not freeze over in winter.

Russia has military bases on the archipelago and has deployed missile systems on the islands.

With a population of approximately 20,000 people, the islands are rich in hot springs and minerals and rare earth metals such as rhenium, which is used in the production of supersonic aircraft.