Connections between Iceland and Russia have a history shaped by shared commerce, political decisions and, in recent decades, growing distance. While embassies once signalled regular dialogue, recent events have prompted a rethinking from both countries, with implications both for political life and everyday business.
Foundations in trade and science
Diplomatic interactions began in the early 20th century. Iceland recognised the Soviet Union in 1926 and soon afterwards both governments made trade arrangements designed to benefit their economies. After the Second World War, scientific interest drew Soviet researchers to Icelandic waters. In 1949, a Soviet fishing expedition to Icelandic seas marked the beginnings of a decades-long collaboration in fisheries. Through the 1970s, Soviet earth scientists partnered with Icelanders, most notably when researcher Vladimir Belousov contributed to a detailed geological study of the country, producing its first geological map and exploring seabed structures around the island.
Modern cooperation and recent cooling
As the Soviet Union changed, so too did its relationship with Iceland. In the years following 1991, diplomatic efforts continued with Russia, including trade deals and cultural exchanges. Published in 1997, the first Russian-Icelandic dictionary reflected growing ties. High-level visits followed, with the Icelandic president meeting Russian leaders in several major cities in 2002. Cooperation expanded to clean energy, fisheries and joint cultural events such as Days of Russian Culture in Iceland.
Financial urgency during the 2008 Icelandic banking crisis led to Iceland seeking Russian loans. Although negotiations began for considerable support, the financial agreement was reduced and ultimately fell through, with Russia providing no funds, as Iceland secured alternatives from Scandinavian neighbours and international organisations.
Trade relations in the early 2000s were substantial but reflected broader patterns: Russia was an important exporter to Iceland, supplying mainly oil products and aluminium, while Iceland sent ships, seafood, and industrial goods the other way.
Meetings between leaders continued in Arctic forums, showing shared interests in the far north. Yet, disagreements surfaced from 2018, especially after the poisoning of Sergei Skripal in England. Iceland suspended direct high-level talks and abstained from major Russian events. The war in Ukraine deepened divides, with Iceland imposing sanctions, joining European partners, and Russia placing Iceland on its list of “unfriendly countries.” In June 2023, Iceland suspended its embassy operations in Moscow, signalling a further step back from direct engagement.
The arc of Iceland–Russia relations is one of mutual curiosity and occasional tension, turning from cooperation in fisheries and research to more distant affairs in response to international crises. Scientific partnership and trade gave way to diplomatic caution, mirroring broader shifts among European nations in recent years.
