Iceland in possible deal with Russia over naval base.

[Dave Wooley]

Its been reported that Iceland was refused financial assistance by the EU to help shore up its crisis hit banking system . Russia has stepped in with a huge financial injection . It's also been muted but not confirmed that Russia would like the former USN base for Russian naval forces.
Dave Wooley

[Jack Ray]

I thought Iceland was a member of NATO.

It would be pretty ironic if the Russians obtained a base there, especially after NATO's willy nilly expansion eastwards.

Jack

[Dave Wooley]

I thought Iceland was a member of NATO.

It would be pretty ironic if the Russians obtained a base there, especially after NATO's willy nilly expansion eastwards.

Jack

Yes you're right Iceland is a member of Nato . But Iceland has been hung out to dry by the EU.
Dave Wooley

[ASFC]

Iceland ain't part of the EU so what does it expect!!??

Anyways, its a member of NATO, and Russia is far worse off than the US in this crisis. Moscows stock market has by far and away suffered more than others.....

You don't mind if I ask where this has been 'reported'??

[Dave Wooley]

Iceland ain't part of the EU so what does it expect!!??

Anyways, its a member of NATO, and Russia is far worse off than the US in this crisis. Moscows stock market has by far and away suffered more than others.....

You don't mind if I ask where this has been 'reported'??

You are correct Iceland is not an EU member but that country approached the EU for help and assistance and this was refused. So much for European cooperation. As for Russia being worse off than the US in this crisis, how? The speculation surrounding the Iceland -Russia deal comes from associated press . Yes the deal to assist Iceland will be concluded . Russia has the funds and now the leverage.
Dave Wooley

[ASFC]

Russias Stock Market and its huge falls, which unlike the NYSE is constantly being suspended? The falls in the price of Gas and Oil, the same Gas and Oil which supports the growth in the Russian economy. Russia can't fund everything and will have to make some choices.....

Something has to give, and the rest of NATO might not take too kindly to the VMF turning up in Iceland.......

......thats of course if they have enough ships to send, the Russian Navy seems to be more stretched than the RN at the moment.

[chuck]

Iceland ain't part of the EU so what does it expect!!??

Anyways, its a member of NATO, and Russia is far worse off than the US in this crisis.

Except Russia is stilling on a $500 billion foreign reserve and has no liquidity crisis with its own banks.

[chuck]

Russias Stock Market and its huge falls, which unlike the NYSE is constantly being suspended? The falls in the price of Gas and Oil, the same Gas and Oil which supports the growth in the Russian economy. Russia can't fund everything and will have to make some choices.....

Except Russian economy, not benefiting much from transparency or a highly efficient financial sector, isn't near as deep into its stock market as is the case with Anglo-Saxon style economies. Russian stock market and fall to zero and much of Russian economy will continue to function.

[bengtsson]

Both your points above are true Chuck. [but I'm sure you will argue that point with me! ] The government of Russia is in the Black big time. If the stockmarket tanks, well, then investors in stocks take a beating, but the stockmarket in Russia is not the Russian economy. They have huge reserves, we do not.
My sources , BBC, said that Iceland received some 4 billion odd Euros as a loan to shore up Iceland's reserves. Whether that helps much, is in doubt, Iceland was a "Hedge Fund" pretending to be a nation. The Hedge Fund collapsed, now they must go back to being a nation. But they are to all intents and purposes INSOLVENT. Their liabilities after taking over the Iceland banking system are many times over the whole Iceland GDP. No way they can avoid complete default, right now they are all but cut off from the world financial system. Hard times!
As to base rights?? No way, there is no credible report of that, not even in Russian news sources. This ain't happening.
The EU did stiff Iceland. Norway looked to be moving to help, but backed out. Why? Most likely they asked to look at Iceland's books, once they saw the extent of Iceland's debt, they ran for cover! Russia may lose every penny on this deal.
If we want to fear for anybody right now, it is us in the USA. We do not have reserves, we have 10trillion in debt, growing larger by the moment.

[richter111]

Russia may lose every penny, but the value of a iceland base cannot be underestimated.

it is worth its weight in gold...

Ric

[Lesforan]

That's right.

A Russian naval base in Iceland would effectively expand the "Northern Bastion" strategy of deployment of boomers.

[Gerarddm]

It seems awfully farfetched to me that they could or would grant base rights to the Russians. If such a wild scenario ever were seriously postulated by Iceland, the West would finally step up, per Lesforan's observation.

[chuck]

Excuse me, where in Iceland can one build a naval base???? Iceland for all practical purposes have no major natural harbors....... It only has a few exposed anchorages.

[Dave Wooley]

Excuse me, where in Iceland can one build a naval base???? Iceland for all practical purposes have no major natural harbors....... It only has a few exposed anchorages.

Breidafjordur Bay !
Dave Wooley

[bengtsson]

In this day and age, wouldn't airfield rights be far and away more important than a naval port? Iceland is hard to sink.

Bob B.

[chuck]

In this day and age, wouldn't airfield rights be far and away more important than a naval port? Iceland is hard to sink.

Bob B.

But apparently vulnerable to being made a mission kill.

[Dave Wooley]

In this day and age, wouldn't airfield rights be far and away more important than a naval port? Iceland is hard to sink.

Bob B.

But apparently vulnerable to being made a mission kill.

Keflavik was the main base for the US presence on Iceland but was vacated in late 2006.
Now Icelands airport but could fulfill a similar stop over, refueling and monitoring function for the Russians.
Dave Wooley

[Lesforan]

Certainly an airfield would be an important part of a naval base. The Russians could put it to good use as a base for their patrol bombers, and as a refueling stop that would lessen the need for in-air refueling. The abandoned US base would surely have included an airfield.

It would really help them establish a naval presence in the North Atlantic.

I don't think this is going to happen. From a monetary standpoint, it would be cheaper for the US to subsidize Iceland than to counter a Russian naval foothold in Iceland.

Maybe this is what Iceland had in mind all along.

[Dave Wooley]

Certainly an airfield would be an important part of a naval base. The Russians could put it to good use as a base for their patrol bombers, and as a refueling stop that would lessen the need for in-air refueling. The abandoned US base would surely have included an airfield.

It would really help them establish a naval presence in the North Atlantic.

I don't think this is going to happen. From a monetary standpoint, it would be cheaper for the US to subsidize Iceland than to counter a Russian naval foothold in Iceland.

Maybe this is what Iceland had in mind all along.

For Russia to gain a foothold in the Atlantic at the expence of NATO would indeed be a coup of the highest order.
Dave Wooley

[bengtsson]

The USA would take Iceland on as a non declared part of the United States before they let a Russian military presence exist there.

Not sure how Icelanders would react, but if it meant being on Uncle Sugar's welfare rolls, they might not complain

Bob B.