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The paper will examine the evolving relations between Russia and Japan with their strategic calculations and economic interests and their impact on the Russian Far East. The RFE has been described as Russia’s “bridge” to Asia because of its geographical location and natural resource endowment, both of which can be exploited by Moscow to advance its strategic and economic interests vis-à-vis Japan and other Asian countries. Japan has also seen the region as a potentially significant source of energy and other natural resources. The Russian Far East is also significant for Japan because the Northern Territories (southern Kuriles) are located there and Tokyo’s overall political relations with Moscow are influenced by the impasse in the resolution of bilateral territorial dispute. The paper will analyze Moscow’s current policies as pronounced in declarations and directives and as evident in the actual commitment of resources to implement them. What is the evidence of commitment and implementation in the Far Eastern regions? The paper will then analyze Tokyo’s stated policies toward economic and political ties with Moscow and the specific measures it is taking. These analyses will allow us to assess the realistic potential of the Far East to benefit from the evolving relations between Moscow and Tokyo.