Relations between Iceland and Russia have floundered in recent years due to the Russian invasion of Ukraine and the poisoning of Sergei Skripal, and on June 9, 2023, Iceland announced it would be suspending operations at its embassy in Moscow.

[2] In 1927, the governments of both countries exchanged notes about commercial relations, granting each other favorable trade conditions.

[3] Direct diplomatic relations between the Soviet Union and Iceland were established on October 4, 1943.

[citation needed] Cooperation between the two countries is developing in different directions: During the 4th International Arctic Forum in Arkhangelsk in March 2017, then Icelandic President Guðni Th.

[13] Towards the end of March 2018, Iceland suspended high-level bilateral dialogue with Russian authorities.

In a statement on their website, Icelandic officials stated that the Russian response to the attack was "severely lacking" and did not showcase as to how a nerve agent produced in Russia came to be used against civilians in the United Kingdom.

Iceland exports to Russia ships and vessels (25,1%), sea products (23,3%), textiles and garment (14,9%), chemical fertilizers (10,8%), and industrial equipment (9,5%).