OSAKA, Japan, June 29 (Xinhua) -- Japanese Prime Minister Shinzo Abe and Russian President Vladimir Putin launched a joint press conference at the conclusion of the Group of 20 (G20) summit here on Saturday.

"Much work needs to be done to take Russia-Japan relations to the next level," Putin said.

"But this will set the stage to resolve the most difficult issues we are facing in a mutually acceptable manner," said the Russian president.

Putin and Abe, on the long-standing territorial dispute, said both governments will continue the negotiations in line with a joint declaration signed in 1956, and in the meantime forge ahead with joint economic activities on the disputed islands.

"It will not be easy to reconcile our differences, but it is becoming clearer what the issues we need to overcome are," Abe told the joint press conference.

The meeting of Abe and Putin took place after leaders of G20 members wrapped up the two-day summit in Osaka where the duo also held expanded talks over dinner.