US departure leaves Iceland with bill of ISK 6 billion Skip to content

US departure leaves Iceland with bill of ISK 6 billion

Iceland will incur direct and indirect expenses of ISK 6 billion annually in connection with the departure of the US military from Keflavík reports the weekly economics newsletter Vísbending, a sister publication of Iceland Review.

The study by Vísbending was prompted by reports that the presence of the US defense forces in Iceland presented a cost to the US of ISK 18 billion per annum.

Vísbending collected and compiled information about how much it would cost Iceland to fund the operations of Keflavík Airport, which the US has paid for until now, and estimates those costs at ISK 2.5 to 3 billion. It also added up the cost of foregone revenues of services provided to the US military and foregone salaries of the employees at the US base. Altogether, the increased costs and foregone income add up to approximately ISK 6 billion.

Vísbending did not include additional costs of defending the country and monitoring the waters surrounding Iceland.

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