The Oilers sent defenceman Marc-Andre Bergeron and a third-round draft pick in 2008 to the New York Islanders in exchange for blue-liner Denis Grebeshkov.
Grebeshkov was a first-round draft pick in 2002 and has played 33 NHL games, but is spending this season with Yaroslavl Lokomotiv in the Russian league.
The 23-year-old is expected to remain in Russia this season. He'll be a restricted free agent this summer.
"We see the upside in the player we're acquiring," Oilers GM Kevin Lowe said. "We see this as a long-term upgrade."
Bergeron had spent his entire NHL career in Edmonton. He had 33 goals and 88 points in 189 games.
The 26-year-old is a mobile defenceman. He should step in and help an Islanders blue-line that is missing Radek Martinek and Bruno Gervais with injuries.
"This trade addresses our need for a quality offensive defenceman to improve our power play," said Islanders GM Garth Snow. "Marc-Andre is an excellent point man, a very good skater and a solid competitor."
The Oilers and Islanders are each currently outside of the playoff picture.