With the total collapse of Iceland's banking system and the inability of the tiny proud nation to rescue it, they'e turning to someone who seems more eager to work with them.

I would like to see something else happen. Iceland was granted independence from Denmark years ago. Denmark has a significant economy and a very stable housing market thanks to the use of 'covered bonds' to finance housing. If the situation is desperate enough for Iceland, perhaps they should re-join Denmark, but with real representation in its government. Then Denmark should consider it's vast resource potential in Greenland and Iceland and it's claims in the Artic and North Sea. They might sell a substantial or even controlling interest in those resources, or even sell Greenland. The geothermal potential alone and the ability to store CO2 could probably solve much of the worlds problems if those resources were utilized in a huge project to provide the bulk of the worlds power - via new superconducting wires laid on the ocean floor. Who would pay up front for the right to utilize the resources? Anyone? Denmark/Greenland/Iceland should structure any agreement to guarantee a future revenue stream from the energy produced and the carbon credits from CO2 storage.

Russia will probably opt for strategic options. For instance, they might get permission to use Keflavik Airport, which the NATO recently abandonned. Also I don't think Denmark is legally able to 'sell' Greenland, it has it's own decentralized democratic institutions.

Russia is flush with cash right now and is willing to use its influence.

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No party holds the privilege of dictating to me how I shall vote. If loyalty to party is a form of patriotism, I am no patriot. If there is any valuable difference between a monarchist and an American, it lies in the theory that the American can decide for himself what is patriotic and what isn't. I claim that difference. I am the only person in the sixty millions that is privileged to dictate my patriotism.
- Mark Twain, a Biography