As we all know (and if we don’t better get informed) a deep financial crisis is slowly engulfing our globalized economy and some countries start to sink. Iceland was doing what the bigger economies were – money-printing driven bubble pumping. Now a reality check came and Iceland’s PM went on national TV to announce the whole country might go bankrupt. Naturally, feeling the heat they turned for help to their traditionally allies, which we may safely assume included the US. But those allies refused having the very same problem on their hands. So Iceland turned to… Russia and Russia will give them €4bn loan.

Icelandic officials quickly denied that their “new friendship” with Russia includes any kind of military cooperation, for example giving Russians access to an airbase vacated by the US Air Force in 2006. Well, a 19th century Russian diplomat, prince Gorchakov used to say: “I don’t believe in news that are not officially denied” – and I think it very nicely applies here. Have a look on the map and see where Iceland is, how big it is and what resources it can offer. The fact is the only thing Iceland can offer is its strategic position. Except for some fish there is nothing there and I don’t think Russia is in particular need of Atlantic fish. But assuming Russians would get there it would allow them to control strategically important sea routes on the North Atlantic and would help them in their bid for control over the Arctic.

This just shows how wise Russia is playing its cards since Putin’s clique of ex-KGB officers took helm from the ailing Yeltsin. A very, very wise move on their part. And also very worrying for Europe, especially its eastern part.