Iceland and Sweden share more than northern latitude and a preference for coffee. Their relationship stretches across centuries, beginning with the era when both were inhabited by the Vikings. The first Swede known to reach Iceland was Garðar Svavarsson in 870, distinguishing himself as the first person to sail around the island. His journey set in motion a connection between the two lands that would evolve through the ages.
Shared history and diplomatic evolution
The political pairing of Iceland and Sweden began in 1380 with the formation of the Kalmar Union. This alliance, under a single monarch, united Denmark, Norway, and Sweden, along with territories like Iceland. For nearly a century and a half, their destinies were intertwined as part of the same realm. When the union ended in 1523, Iceland remained under Danish control for centuries while Sweden charted its own path. Iceland’s journey toward full autonomy reached a milestone in 1918 with independence as a Danish constitutional monarchy, and it finally became a republic in 1944.
In the midst of World War II, on 27 July 1940, Iceland and Sweden established formal diplomatic relations. Both countries had maintained official neutrality during the war. Yet, Iceland’s circumstances changed when Allied forces occupied the island, transforming it into a strategic base. At the same time, Sweden offered unofficial assistance to the Allies.
Modern collaboration and mutual support
The two nations have since maintained resident embassies in each other’s capitals and have become active participants in joint Nordic and international bodies. They are both members of organisations such as the Arctic Council, Council of Europe, NATO, the Nordic Council, and the United Nations. Collaboration focuses on challenges facing the region, including climate change and Arctic policy. Iceland and Sweden have also participated together in international operations, such as contributing to the International Security Assistance Force in Afghanistan.
Solidarity has also been visible during periods of crisis. During Iceland’s financial troubles from 2008 to 2011, Sweden’s central bank issued 5 billion Swedish Krona (about €520 million) to Iceland’s Kaupthing Bank, helping to reimburse depositors and creditors impacted by the collapse.
Trade plays a consistent part in the relationship. Iceland’s participation in the European Free Trade Association provides it with unrestricted access to the EU market, of which Sweden is a member. In 2015, trade between Iceland and the rest of the EU reached €5.7 billion.
What began with Viking ships and Kalmar monarchs now endures in embassies and shared Nordic initiatives, shaping ongoing ties between two northern neighbours.
