Norilsk Nickel has signed an agreement with the Russian Academy of Sciences to explore industrial uses for palladium.

As part of the agreement the Russian Academy of Sciences is to set up the Norilsk Palladium Scientific Centre at its Unified Catalysing Institute in Siberia.

Norilsk Nickel, which is the world's largest palladium producer, already works with the academy in the development of fuel cell technology.

In 2003 the company entered into a cooperation agreement with the Russian Academy of Sciences in the area of hydrogen energy and fuel cells.

The news follows the announcement last month that Norilsk is to be inspected by federal tax officials.

The company also recently announced a $750 million share buy back scheme.