Well, in response to being declared a terrorist nation by they UK, and by the IMF attempting to impose draconian conditions on it, Iceland’s President Olafur Ragnar Grimsson has invited Russia to use the old US Air Force base at Keflavik.

The US closed the base in 2006, so certainly the space is available, and the Russians could pay in cash, though the Russian ambassador was as flummoxed as the rest of the people at the diplomatic luncheon.

As to where this will end up, I tend to think that between the gentle ministrations of Gordon Brown and the International Monetary Fund, there is a pretty good chance that the Russians will end up with both Keflavik and a naval basing agreement.