Earlier in the week, Putin and South Korean president Moon Jae-in issued a joint statement advocating infrastructure development as the means to improve relations in the area, and announcing the formation of a $1bn fund for joint projects.
The proposed link has been described as a "bridge across history" because Moscow and Tokyo have failed to sign a treaty formally ending the hostilities of WWII.
The trip is one of great topographic value, with trains passing through Germany and Poland before entering Eastern Europe.
Passengers would be able to marvel at the snow-capped mountains in Siberia before discovering the stark and deserted countryside of Russian Federation for bulk of the trip.
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The Sakhalin-Hokkaido bridge could be built in the "foreseeable future", Shuvalov said, and should be seen as "a reflection of the trust that is being formed between the two countries". The 28-mile bridge would stretch between Cape Crillon on Sakhalin and Cape Soya on Hokkaido. From there, travelers could connect to Japan's rail network to make their way to Tokyo.
Shivalov said: 'We are close to starting our part of the job'.
Russian Federation and Japan have not signed a peace treaty since the end of World War II. After the end of World War II the Kuril Islands were incorporated into the Soviet Union. "Given modern technologies, it is not even that expensive", he said.
There is no specific time limit for concluding a peace treaty between Russian Federation and Japan, but there is a mutual determination to achieve this goal, Kremlin spokesman Dmitry Peskov said Thursday. The main stumbling block to this is the issue of the ownership of the Southern Kuril Islands.