Cable Viewer

Currently released so far... 3373 / 251,287

### Articles

Brazil Sri Lanka United Kingdom Sweden Editorial United States Latin America Egypt

### Browse latest releases

2011/02/01 2011/01/31 2011/01/30 2011/01/29 2011/01/28 2011/01/27 2011/01/26 2011/01/25 2011/01/24 2011/01/23 2011/01/22 2011/01/21 2011/01/20 2011/01/19 2011/01/18 2011/01/17 2011/01/16 2011/01/15 2011/01/14 2011/01/13 2011/01/12 2011/01/11 2011/01/10 2011/01/09 2011/01/07 2011/01/05 2011/01/04 2011/01/02 2011/01/01 2010/12/30 2010/12/29 2010/12/28 2010/12/27 2010/12/26 2010/12/25 2010/12/24 2010/12/23 2010/12/22 2010/12/21 2010/12/20 2010/12/19 2010/12/18 2010/12/17 2010/12/16 2010/12/15 2010/12/14 2010/12/13 2010/12/12 2010/12/11 2010/12/10 2010/12/09 2010/12/08 2010/12/07 2010/12/06 2010/12/05 2010/12/04 2010/12/03 2010/12/02 2010/12/01 2010/11/30 2010/11/29 2010/11/28

### Browse by creation date

66 72 73 75 79 86 88 89 90 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1986/05
1988/01
1989/12
1990/01 1990/07 1990/08
2000/09 2000/11
2001/02 2001/03 2001/07 2001/10
2002/02 2002/03 2002/11
2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Amsterdam American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Casablanca Consulate Cape Town
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown
Embassy Guatemala Embassy Gaborone
Embassy Harare Embassy Hanoi Consulate Hamburg
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kigali Embassy Khartoum Embassy Kampala Embassy Kabul
Embassy Luxembourg Embassy Luanda Embassy London Embassy Lisbon Embassy Lima Embassy La Paz Consulate Lagos
Mission USNATO Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Maputo Embassy Manama Embassy Managua Embassy Madrid Consulate Munich Consulate Montreal Consulate Monterrey
Embassy New Delhi Embassy Nassau Embassy Nairobi Consulate Naples
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate Shenyang Consulate Shanghai Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn
USUN New York USEU Brussels US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Consulate Vladivostok
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AF ASEC AM AE AG AR AS AU AORC AJ AMGT AGMT AFIN APER ABUD ATRN ACOA AEC AO AX AMED ADCO AODE AFFAIRS AC AL ASIG ABLD AA AEMR AFU ASUP
BR BM BRUSSELS BL BK BA BO BILAT BTIO BEXP BH BE BX BU BIDEN BY BG BF BB BC BBSR
COUNTER CH CO CG CE CA CASC CU CLINTON CI CVIS CDG CIA CACM CDB CS CBW CD CV CMGT CJAN CF CN CAN CIS CM CONDOLEEZZA COE CR CY CTM COUNTRY CLEARANCE CPAS CWC CT CKGR CB CACS COUNTERTERRORISM
DA DJ DEAX DR DHS DOE DEA DK DISENGAGEMENT DOD
ECON EG EAID EFIN ELAB EUN ETRD EU EXTERNAL ENRG ETTC EPET EINV EMIN ECIP ECPS EINDETRD EAGR EN EZ ER ET ES EUC EI EAIR EIND EWWT ELTN EREL ECIN EFIS EINT EC ENVR ECA EINVETC ENIV EINN ENGR EUR ELECTIONS ECUN EINVEFIN
FR FJ FINR FAO FTAA FREEDOM FI FARC FBI FMLN
GTMO GOI GM GG GV GH GA GE GT GR GTIP GCC GAZA GZ
HILLARY HA HU HR HUMAN HO HYMPSK HURI
IS IR IZ INRB IAEA IN IT ID IV ICTY IQ ICAO INTERPOL IPR IRAJ INRA INRO IC IIP ITPHUM IWC IO ISRAELI IRAQI ICRC IMO IF ILC IEFIN INTELSAT ITALY ITALIAN
JAMES JO JA JOSEPH JUS
KDEM KJUS KCOR KOLY KIPR KNNP KU KWBG KPAL KN KS KZ KAWK KISL KPAO KCRM KSEC KGHG KIFR KTFN KDRG KV KSUM KWAC KAWC KDEMAF KFIN KTIP KHLS KSPR KGCC KPIN KG KBIO KHIV KSCA KE KFRD KNUC KMDR KPLS KUNR KIRF KIRC KACT KGIC KRAD KCOM KMCA KHDP KVPR KDEV KWMN KTIA KPRP KCIP KCFE KOCI KPKO KTDB KMRS KLIG KBCT KICC KGIT KSTC KPAK KNEI KSEP KPOA KFLU KNUP KNNPMNUC KOMC KO KTER KHUM KRFD KBTR KDDG KWWMN KFLO KSAF KBTS KPRV KMPI KNPP KR KPWR KMIG
LY LE LG LH LU LI LO LOG
MARR MOPS MCAP MNUC MZ MO MASS MY MEPP MA MR ML MX MIL MTCRE MOPPS MTCR MAPP MU MG MASC MCC MK MTRE MP MDC MAR MEPI MRCRE MI MT MQADHAFI MPOS MD
NATO NI NZ NG NU NO NL NIPP NE NS NAR NPT NPG NK NSG NA NT NASA NATIONAL
OTR OVIP OVP OREP ODIP OPDC OPRC OIIP OFFICIALS OSAC OAS OEXC OFDP OTRA OSCE OPIC OECD OPCW OSCI
PREL PGOV PTER PHUM PINR PAK PREF PL PBTS PHSA PARM PO PINS PK PINT PROP PE POGOV PINL POL PBIO PSOE PKFK PGOF PA PM PMIL PTERE PF PALESTINIAN PY PGGV PNR POV PAO PFOR PHALANAGE PARTY POLITICS PEPR PSI PU POLITICAL PARTIES PECON
QA
RS RU RO RW REGION RP RIGHTS RICE ROBERT RF RFE
SP SY SOCI SCUL SNAR SA STEINBERG SENV SF SO SR SG SW SU SL SMIG SN SHUM SZ SYR ST SANC SC SAN SIPRS SI
TIP TERRORISM TI TU TC TRGY TX TS TBIO TW TSPA TH TR TT TO TFIN TD TSPL TZ TPHY TK TNGD
UN US UK UG UNSC UP USEU UNMIK UV UZ UY UNGA UNO USUN UE UNESCO UAE UNEP USTR UNHCR UNDP UNHRC USAID UNCHS
VZ VT VE VTPREL VN VM
WTRO WTO WA WI WMO WTRQ WHO WWARD
XF XA XG XT XM XR XS XL XK XH XY XC XZ XW
YE YM YI
ZI ZU ZP ZR ZB ZK ZF ZANU ZOELLICK

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page

courage is contagious

### Viewing cable 08REYKJAVIK256, Iceland's Financial Crisis: The Russia Angle

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08REYKJAVIK256.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08REYKJAVIK256 | 2008-11-03 16:04 | 2011-01-13 05:05 | CONFIDENTIAL | Embassy Reykjavik

`

    VZCZCXRO1934
    OO RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
    DE RUEHRK #0256/01 3081651
    ZNY CCCCC ZZH
    O 031651Z NOV 08
    FM AMEMBASSY REYKJAVIK
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 3871
    RUEATRS/DEPT OF TREASURY WASHINGTON DC IMMEDIATE
    INFO RUEHMO/AMEMBASSY MOSCOW IMMEDIATE 0042
    RHEHNSC/NSC WASHDC
    RUEAIIA/CIA WASHDC
    RUEKDIA/DIA WASHDC
    RUEHZL/EUROPEAN POLITICAL COLLECTIVE

` `

    C O N F I D E N T I A L SECTION 01 OF 02 REYKJAVIK 000256

    SIPDIS

    STATE FOR EUR/FO A/S FRIED

    E.O. 12958: DECL: 11/03/2018
    TAGS: PREL EFIN ECON PGOV RS IC
    SUBJECT:   Iceland's Financial Crisis:  The Russia Angle

    Classified by:  Ambassador Carol van Voorst for reasons 1.4 (b) and
    (d).

    ¶1. (C)  The announcement by Iceland's Central Bank on October 7 that
    Russia would provide a USD 5.4 billion loan created an international
    stir, unleashing a wave of speculation as to who had approached
    Russia, why and when the contact was made, and what the Russians
    could be contemplating as the quid pro quo.  The who and when
    questions seemed to have been put to rest by Prime Minister Geir
    Haarde's comment last week that he had discussed assistance with the
    Russians in August "on his own initiative."  As for the quid,
    everything from landing, refueling, maintenance or other rights at
    the former U.S. base at Keflavik, to advantageous exploration and
    exploitation rights in potential gas and petroleum fields under
    Icelandic waters, has been suggested.

    ¶2. (C)  Following the announcement, a team of Central Bank and other
    financial experts traveled to Moscow October 14-15 for talks.  They
    did not return with a deal, but did hold open the possibility of
    further talks.  Although we have been told there have been telephone
    and e-mail contacts, there have been no subsequent meetings.   In the
    meantime, Russian government comments to the press have been getting
    progressively bleaker, hinting at doubts concerning Iceland's
    creditworthiness.   There has also been casual talk that Iceland's
    failure to gain a UN Security Council seat last month may have
    lessened Russian interest.  International press stories outlining
    Russia's own financial difficulties appear to have significantly
    dampened expectations here.  As more time passes without a successful
    deal,  Russia's motives have been questioned, including suggestions
    that Moscow was never serious about the loan and offered it only as a
    public tions stunt to boost Russia's image and discomfit the West.
    (If so, this tactic has not worked all that well:  Icelandic polls
    taken in October 2006 and October 2008 show the same 39 percent of
    the population favorably disposed towards Russia, though the
    negatives in 2008 are slightly higher.)   Although the Icelandic
    government asserts in public that the deal is still on the table and
    bilateral discussions will continue, in private, high-ranking sources
    in the MFA and the Prime Minister's office tell us that the deal is
    on the back burner and they want it to stay there.   Iceland has no
    interest in a bilateral financial arrangement with Russia except as a
    last life-saving effort should friends and allies fail to come
    through with credit.  Icelandic leaders hope that any such loan would
    be included as part of the IMF bail-out, with Russia only one of a
    consortium of lender countries.   If it is a separate bilateral deal,
    however, the government has also repeatedly assured us and the public
    that the loan would be a purely financial transaction, with no
    foreign policy implications.  Few we have talked to believe that
    Russia would actually be so altruistic.

    ¶3. (C)  There has been no lack of theories and entertaining
    "informed" comment as to why the Russians would be willing to offer
    financial assistance for the first time to a NATO country.  Much of
    the speculation we have heard features one or all of the following:
    corrupt Russian oligarchs, Prime Minister Putin, shady bank dealings,
    money laundering, and secret accounts in the now-failed Icelandic
    banks.  One well-placed observer points to a purported close
    friendship between Russian Ambassador Victor Tatarintsev and PM Putin
    that supposedly inclined the Prime Minister to be generous to
    Iceland; other commentators suggest secret illicit connections
    between various oligarchs and the now defunct Icelandic banks or
    their European branches and subsidiaries. A story that circulated
    among the international press camped out in Reykjavik two weeks ago
    claimed that the Russian leadership offered the loan to recover
    Russian state property that had been illegally put up as collateral
    for a loan that a company closely tied to Putin had obtained from
    Iceland's Kaupthing Bank.

    ¶4. (C)  The matter remains a puzzle, and post can't claim to have a
    firm fix on any part of it.   The MFA Permanent Secretary told the
    Ambassador the MFA had no knowledge of any bilateral loan discussions
    before the Central Bank announcement.  A  senior MFA source blamed
    the whole business on Central Bank shenanigans, asserting that the
    Prime Minister did not know of the contacts between the central banks
    until very recently.  Yet another senior official told us that the
    loan offer started off as something quite different:  when an
    Icelandic citizen owner of a small bank in St. Petersburg complained
    of problems with currency transactions, the Russian Central Bank
    proposed to the Icelandic Central Bank that the two institutions
    discuss some sort of cooperation, presumably a currency swap.  At
    some point this summer, the Prime Minister was made aware of and
    became involved in the budding deal.  How the currency swap became a
    huge loan offer is left unclear.   What does seem certain, though, is
    that the Central Bank's announcement of the loan offer came as a
    surprise to many, including members of the Prime Minister's office
    and the Foreign Minister's inner circle.

    REYKJAVIK 00000256  002 OF 002

    ¶5. (C)  Of all the government representatives who have discussed the
    loan in public, Central Bank Governor David Oddson has been the most
    obviously enthusiastic.  If the Central Bank announcement was an
    attempt by this former Prime Minister and champion wheeler-dealer to
    pressure lagging friends - particularly the U.S. - into quickly
    offering their own loans, the game has not been successful.  Except
    for Norway, whose Foreign Minister announced a loan today, the
    Nordics and the rest of the potential lenders continue to mull over a
    decision.

    ¶6. (C)    There is little public or government support for the loan
    except as a last-ditch effort to rescue Iceland from financial ruin.
    Since the closing of the base at Keflavik in late 2006, the
    Icelanders have kept a wary eye on the increasingly visible Russian
    military activities in the High North.  They don't like the Russian
    presence in the North Atlantic and don't want to encourage it.  This
    government most particularly doesn't want to be beholden to Moscow.
    No letter to Russia was included in the flurry of missives sent last
    week to potential lenders, including the U.S., the European Central
    Bank, China, Japan, and the Nordics.  However, if the Icelanders
    can't find the USD four million they need to complete the agreement
    with the IMF from sources they prefer, then sheer necessity will
    dictate that they take whatever the Russians make available.   As to
    the terms of that loan, stated or implied, the deepening financial
    crisis and the pending social upheaval here suggests that the
    Icelandic government will be in no position to be too choosy.

    VAN VOORST

`