Russia on Tuesday announced to allocate over 7 billion rubles (over 225 million U.S. dollars) in 2014 and 2015 to develop military bases in two disputed islands of Iturup and Kunashir.

Iturup and Kunashir Islands as well as two other islands form the disputed Southern Kuril islands. The islands, known in Japan as the Northern Territories, are also claimed by the Japanese government.

"A draft budget envisages to allocate 7.14 billion rubles for building and reconstruction of the military bases on the Iturup and Kunashir Islands," said Frants Klintsevich, vice-chairman of Defense Committee of the State Duma, or the lower house of parliament.

A total of 3 billion rubles will be allocated in 2014 and 4.14 billion rubles in 2015, he said.

According to the official, Russian armed forces also planed to deploy on these disputed islands coastal missile systems of Bastion and Bal and anti-aircraft system Buk-M.

Russia and Japan have long been at odds over the sovereignty of these four Pacific islands. The dispute has blocked a peace treaty between the two countries since the end of World War II.