Chairwoman of the Norwegian Progres Party, Siv Jensen has warned about possible Russian influence in Iceland if the loan to the country goes through. “It would seriously destabilise the balance in the northern hemisphere,” she said. “We are in the midst of talks with regard to oil and gas usage rights and we would be putting more of this area in their hands if this goes through”.
Jensen feels that Norway should come to Iceland’s aid: “We have the capital and we should be able to loan them 30 billion Norwegian Kroner (about 4.7 billion U.S. dollars) to aid them”. She also stated that she was surprised by the Icelanders going to the Russians.
According to ABC-Nyheter Jensen feels that the Russians will gain a grip on the Icelandic nation if this goes through.
The americans should have stayed there. They know what they’re doing always.
Well done Iceland, first step in bringing Russia into Europe and NATO ;)
Iceland Rules (in the future) !
EU with Russia in it will be the strongest Federation on this planet !
Endless oil, endless gas, largest army.
EU can help Russia become a better place.
Russia can help Europe with all the energy we need.
Iceland is the king !
It is worth noting that you left out the rest of Jensens offer. Which was 4.7 billion U.S. dollars at 0 interest!
The Norwegian Progress Party is either the biggest, or second biggest political party in Norway, and is known for having an ability that was once credited to Margaret Thatcher: “The unerring ability to know what at any time is moving in the heart of Essex Man”
From the comment sections in Norwegian papers, it is looks like they have once again blindsided the other political parties. Who have an unfortunate kneejerk reaction of opposing anything the Progress Party suggests, and the watch in horror as their voters leave for the progress Party in droves.
If this follows the normal pattern, soon politicans from other parties wil slink after them in humiliation, with a slightly changed proposal, trying to pretend it was their idea all along, and hoping the voters will not remember.
There are some concrete Russian interests in Iceland. There is of course the plan by a Russian-Icelandic consortium including Lukoil for an oil refinery in the Westfjords.
In terms of aluminium, Rusal has not shown a particular interest in smelting in Iceland, while Norsk Hydro does have interests as a partner in the deep drilling project with Alcoa (through Statoil) and there have been some rumours of a Norsk Hydro smelter in Thorlakshofn in the past.
Some comment author above mentioned that they have all of Siberia for smelters etc. Well, erm, nope. A smelter needs (1) a port for supply of refined bauxite (alumina) and shipping of aluminium and (2) a big cheap power source, so the number of potential locations in Siberia are actually quite limited.
Interestingly, Nordural / Century Aluminum, seemingly all-American, is part owned by Russians. The largest owner of Century is Glencore, which recently merged with Rusal and Sual to form United Company Rusal. Through Glencore UC Rusal is also the main client and supplier of Century.
Uk is demanding Icelandic government to pay way over 100.000 pounds per person living here, kids and older people included! none of our Nato “friends” even talk to us unless in media and then to kick us down.
We have no chose but to go to the Russians and imf and ask for help and i fear that we can’t even afford to say no to a Russian military base if thats what they want.
Even help from Norway, IMF and Russia might not be enough depending on how deep we and the world economy will sink.
Last time a nation in Europe was in a situation where they had noway of helping them self gave us Hitler! I doubt we will go through that again, but putting a desperate nation in the corner instead of helping or just leave them alone makes desperate solutions.
Siv Jensen is not a representative of Norway officials, her only issue is to make a political issue out of this case as of all other cases. Siv Jensen is a populist and her problem is that there are to few real problems in our country.
The Iceland government try to handle the bank and finance problems as well as possible. The first problem is to make solutions for bank customers in Iceland and countries with Icelandic banks. The Norwegian bank system has already takeen care of that in Norway, because each customers in each bank has a Norwegian bank guarantee of about Euro 235 000 – which is enough for most of the customers. This is much higher than it was in other countries – so peoples money here was more secure.
Iceland also got a credit from Norway already for several monts ago, which is still not used, and they know they are welcome do discuss more if needed. But it is in all countries interest that Iceland get a solution. Iceland take care of their business as they should. The contact between Iceland and Norway is very well handled. It is a kind of waste of time to discuss problems between countries where there are almost no problems.
Norway also wants yo and have good relations to Russia, we have a common border i the north. Norway and Russia wants to cooperate. Why should we then say to an independent nation like Iceland that they should not loan money i Russia??? Remember – it was in Iceland Gorbie and Reagen met. Should we then ask Iceland to start a new cold war??
I have visited Iceland twice this year – last week and in June – and it was wonderful. For twenty years ago I travelled with the Trans Sibirian Railroad – it was also fantastic journey.
Michalis, we thank you for telling us. Mistakes like this one unfortunately do happen in frantic times. We will do our best to avoid them.
Lenka, IceNews
Thank you for considering my comment and changing the title of the post!
BTW, as my blog is in Greek, I would like to explain that I blog about Iceland in Greek. And, unlike some comments here, I try to distiguish systematically between fat cat, riche-rich greedy bankers and businessmen and the common Icelandic people. I know that in Greece too we have both kind of people, as in everywhere else in the world.
Sorry, what this Progress Party is? Is it leading power in Norwegian Parliament? Or, is it just political marginals? Don’t know. Though, their chairman looks nice ;)
As I can see, the point to give a loan for Iceland is really only a “strategic advantage”. What can it give, the Iceland, I mean? Aluminium?? Don’t make my slippers giggle – look at the map and compare. There is a place for 165 Icelands on the territory of Russia :), and most part of this territory – wild (4,2 person/sq. kilometer) Siberian lands full of wood, coal, oil, gold and all the other so needed elements. One problem – transport infrustructure and living conditions in severe climate.
By the way, for those who don’t know: total population of Russia is only twice bigger, than population of UK and two times less, than population of US. So, we are afraid here, that UK, US, basically NATO with all their allies such as Norwegia, Sweden, Iceland, Poland, Baltic miserable states etc., in case of the first possibility will assault us and this war might will be the last for most of people. But, aren’t these fears with grounds? Formerely friendly states turning around by “colour democratic” governments, miserable states build all their political life on rusophobia – like a dog – if you bite you will receive a piece of meat, but you must bight constantly to be full. People in the world are given by pure 100% shit about Russia and it’s policy. Image of the country is blackening by millions and millions of dollars. Only those people who lived there change their mind (my own experience). To change the mind of people who absorbed BBC and CNN seems too difficult – as to turn muslim into christianity.
Third point – as long as there will be a visa regime for people of both territories – European Union and The Russian Federation, we won’t come closer to each other, just because the point of current separation of the continent – is not to let the Europe and Russia be together. Cause if it will happen, US power will drop immediately and very deep. So, they (US) prefer to rule by European Peninsula, instead of Greate Europe (motherland of modern civilization, btw)
So, Icelanders – don’t worry :) Everything will be OK!
Sigdis: Your banks were heavily leveraged, and when interbank loans frooze up, they fell.
And now you threaten us with allying yourself to Russia, we we don’t send money to help you, out of your problems?
In the past I was ceptic when Gordon Brown used anti-terror laws to freeze Icesave assets. But not any more, anti-terror laws does apply to Iceland, especially with oppinons like that.
Nevertheless from where the money comes, or not, Iceland will be more stronger as nation in the future. Fire and cold that is maybe a blessing.
“Norwegians and Russians = same same”
Borghild you really need to get some professional help, you suffer from extreme Schizophrenia.
Schizophrenia=abnormalities in the perception or expression of reality.
[…] to join the EU and adopt the euro as its currency. The Russians have offered a massive loan, which troubles old Norway, while strange rumors are circulating that Iceland will let Russia use the now-vacant NATO base. […]
It would definitely be better for Norway to help Iceland. Do we really want to see more Russian influence there?
Of course the Russians can see strategic advantage in closer ties with Iceland. With the Arctic opening up it would give them far easier access to the Denmark Strait. Now that’s not going to make NATO and the US happy – perhaps it will encourage them to be a little more supportive in future.
The title of this post is absolutely misleading. It’s not Norway in general, meaning the Norwegian goverment or the majority of public opinion or of the political parties, but it is a single political party which is afraid. This political party is also quite populist, racist, and against regulation in markets. (See Wikipedia) You have to change this headline.
Ok, so Norway is morally a better candidate than Russia? Wasn’t it Norsk Hydro that wanted to build a dam in Iceland to power a 600.000 ton aluminium smelter?
Iceland shouldn’t sell itself cheap. It has some of the most pristine environment on the planet.
Norwegians and Russians = same same
What I can not understand why Icelandic goverment not has asked Norway for help?
Pointing the finger is always easy to do.
Opening the wallet..that’s a little bit harder.
Where are our Viking friends when we need them? I thought Geir Haarde was half Norwegian?