Russia and Iceland have agreed co-operation in geothermal energy production. Under the intergovernmental agreement, which was signed on 22 October by Russian energy minister Sergei Shmatko and Icelandic minister of industry, energy and tourism Katrin Juliusdottir, the parties plan to design and build geothermal energy generating facilities.

Shmatko said Russia expects to take equity stakes in Icelandic companies working in the field of renewable energy and implement joint projects in the Russian far eastern Kamchatka peninsula, which is rich in geothermal resources and where three geothermal power generating plants are currently in operation.

In particular, the Russian government intends to create projects in Kamchatka that are designed to run on geothermal energy, including the development of metallurgical facilities.