"I and President Putin share the view that it is an abnormal situation that Japan and Russian Federation have not concluded a peace treaty although more than 70 years have passed since the end of the war", Abe said.
The exercises coincide with the Russian-sponsored Eastern Economic Forum in Vladivostok on the Russian Pacific coast.
"In a rapidly changing global situation with growing instability and unpredictability, cooperation between Russian Federation and China takes on even more importance", said Xi, according to a transcript on the Kremlin's website.
Abe, who said on Monday that talks with Putin were moving toward a peace treaty, did not give a response.
"This stance hasn't changed", he added.
Russian President Vladimir Putin has treated Chinese President Xi Jinping to Russian pancakes in a show of warm personal ties between the two leaders.
Mr Putin said security in the region was a key issue and that Russian Federation was concerned by a move to establish a United States missile defence system there.
A Japanese foreign ministry spokesman, Takeshi Osuga, said the two leaders "shared their determination to promote bilateral relations and to make progress on all fronts". "Putin does not expect anything", Kunadze told Echo of Moscow radio station.
Abe smiled at the suggestion.
Abe said he and Putin approved a "road map" to realize the activities on the islets in five areas - aquaculture, greenhouse farming, tourism, wind power and waste reduction - which they agreed on a year ago.
The two leaders agreed to strengthen cooperation on science, technology, energy and agricultural sector. Japan claims them. The Japanese government maintains the islands are an inherent part of Japan's territory.
It is not the first time to cook together; In June when Putin visited he made a Chinese pancake which was later served to Xi.