ITURUP ISLAND (Kuril Islands), July 29 (RIA Novosti) - Russia does not intend to make any territorial concessions on the four South Kuril Islands, Russian Defense Minister Sergei Ivanov said here today.

"We do not intend to make any territorial concessions or withdraw from the islands," Ivanov said. "This problem is old and known to all. We are ready to hold diplomatic negotiations, which we have been conducting for 50 or 60 years, and we are ready to continue them in a specific and respectful spirit."

The minister said Russia was interested in further cooperation with Japan.

"I think Japan is also seeking the development of relations with Russia, but resorting to ultimatums and making tough conditions is a fruitless way," Ivanov said. "We must create acceptable and favorable conditions."

The defense minister said Russia was not planning to slash or increase its military contingent on the South Kurils.

"The current number is optimal," he said. He also spoke in favor of improving the quality of the contingent, implying re-equipment and modernization.

Japan demands that Russia return the four South Kuril Islands (Iturup, Kunashir, Shikotan, and Habomai) known as the Northern Territories in Japan, which were allegedly captured by the Soviet Union in 1945 as a result of World War II.

Russia acknowledges that the territorial problem exists but has turned down Japan's ultimatums on the transfer of the islands, suggesting that the dispute be solved on the basis of the 1956 Declaration. According to the declaration, Russia would hand two South Kuril Islands over to Japan as a goodwill gesture after signing a peace treaty.