How Russia and Japan abandoned the war of exhaustion and concluded the world Briefly On August 23 (September 5), 1905, a peace treaty was concluded in the American Portsmouth, which ended the Russo-Japanese War. By the time the world was concluded, Russia was defeated at sea and suffered several severe defeats on land, but did not consider herself defeated. Japan managed to win brilliant victories, but the further war threatened the complete exhaustion of its army and the economy.