Russia Greenlights Loan to Iceland Skip to content

Russia Greenlights Loan to Iceland

Russian authorities have decided to grant a USD 500 million (EUR 354 million) loan to Iceland, it was confirmed by Russia’s Assistant Finance Minister Dmitry Pankin in the local newspaper Vedomosti today.

From St. Petersburg. Photo by Páll Stefánsson.

The terms of the loan have not been determined. Vedomosti states that negotiations with the Icelandic government are ongoing, mbl.is reports.

According to a report from the Barents Observer, Iceland quickly turned to Russia after the banking collapse last fall. Negotiations have been ongoing since then.

Allegedly, Russia’s Minister of Finance Alexei Kudrin considered Iceland’s original request of USD 4 billion (EUR 3 billion) too much for Russia to handle.

The Barents Observer states that Russia does not trade much with Iceland but that the country is an interesting partner geographically speaking. Also, rumor has been circulating that Russian companies are planning extensive investments in Iceland.

Click here to read the full story in the Barents Observer.

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