Over at the Spectator Coffee House, Andrew Neil has reported that Iceland “may look kindly” on Russian requests to use naval facilities on the island in return for a multi-billion pound injection of capital to help Iceland stave off bankruptcy.

Tom Braithwaite, our man in Reykjavik, has just put the claim to an Icelandic official, who appears as shocked by the story as we were.

“We are a founding member of Nato,” he said. “The prime minister categorically denies any such deal with Russia.” 

October 7, 2008 3:48pm in Uncategorised | Comment