(Reuters) – Russia has withdrawn from peace treaty talks with Japan and frozen joint economic projects related to the disputed Kuril islands due to sanctions imposed by Tokyo over Ukraine, setting off an angry reaction from Japan. Russia and Japan have still not formally ended World War Two hostilities because of the standoff over islands just off Japan’s northernmost island of Hokkaido, known in Russia as the Kurils and in Japan as the Northern Territories. The islands were seized by the Soviets at the end of World War Two. “Under the current conditions Russia does not intend to continue nego…