Russian foreign aid, circa 2008
A E4bn loan from Russia might make financial sense – although Russians might think otherwise given Moscow’s shaky finances. But it would create strategic ructions. Iceland is a NATO member, but Russia would want something in return for a loan equal to almost a third of the tiny state’s GDP. The US would fret this could eventually mean a Russian military presence in the North Atlantic.
Here is the story. It seems that Iceland may prefer Russia to the IMF, but Russia does not yet seem on board. I can only wonder what Bobby Fischer would have said…