Moscow will respond accordingly to Iceland's "hostile" decision to reduce diplomatic relations with Russia, the Russian Ministry of Foreign Affairs announced today.

"Any anti-Russian action by Reykjavik will inevitably be followed by a corresponding reaction," the statement added.

Iceland announced yesterday that as of August 1, it is closing its embassy in Moscow indefinitely due to the situation related to the conflict in Ukraine. Thus, it became the first country to make such a decision.

"The current situation simply does not allow the small diplomatic mission of our country to work in Russia," said Icelandic Foreign Minister Tordis Gylfadóttir.

Reykjavik clarified that there is no question of breaking diplomatic relations. Iceland, with a population of about 375.000, has had an embassy in Moscow since 1944, with a break in 1951-53.