Cold, empty and rich in fish and minerals, the seas of the "High North" are a tempting prize for a big, confident country. Even before the startling news of Vladimir Putin's offer of a €4 billion ($5.4 billion) emergency loan to Iceland (see story on page 101), Russia had been beefing up its presence in a part of the world where the nato presence is fitful. Although American submarines still ply the northern seas, other nato vessels are rarely seen. America bruised Icelandic feelings when it pulled out of its Keflavik air base in 2006.rnThe Kremlin, by contrast, commands a cash pile of over $500 billion and, despite sagging markets in Moscow, is well-placed to assist a country facing bankruptcy. Iceland's prime minister, Geir Haarde, said that apart from some support from Nordic states, he had received little response to his appeals for help from Western countries.rn"When our old friends didn't help us, we had to find new friends," he declared. What Russia might want in exchange is unclear. But it is unlikely to be nothing.
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