Iceland Observer: Greenland Geopolitics and Financial Sector Developments

MarketVector™ Iceland Global Index (MVISLG) Returns

1W: 0.71% 1M: 2.51% 1Y: 9.0% Inception (12/31/20): 45.03%

Greenland

Trump Revives Greenland Bid

Donald Trump renewed his push to acquire Greenland this week, saying there is “no going back” and threatening tariffs on European countries opposing U.S. control of the island. Proposed measures include a 10% tariff starting February 1, rising to as much as 25% if no agreement is reached.

Denmark Sends More Troops to Greenland

Denmark announced it is increasing its military presence in Greenland, deploying additional personnel amid rising geopolitical tensions and renewed U.S. pressure over the territory. The move signals a shift from diplomatic messaging toward tangible security measures and has intensified NATO discussions around Arctic defense and deterrence.

Greenland and Europe Push Back

Greenland’s leadership again rejected any suggestion of annexation, emphasizing sovereignty and self determination. Denmark and European allies echoed the stance as NATO discussions around Arctic security intensified.

Corporate & Market News

Íslandsbanki Reopens Skagi Merger Review

Íslandsbanki confirmed this week that the proposed merger with Skagi Group is not finalized and will be reassessed by the newly appointed board. The uncertainty around a deal many had viewed as largely settled puts renewed focus on governance and consolidation within Iceland’s financial sector.

Amaroq Revalued on Greenland Assets

UK investment bank Panmure Gordon raised its valuation of Amaroq to GBP 1.60 per share, around 40% above the current market price. The upgrade reflects the firm’s precious minerals assets and long term mining potential in Greenland.

Landsbankinn Takes Market Maker Role in JBT Marel

Landsbankinn was appointed market maker for JBT Marel shares on Nasdaq Iceland following the merger’s completion, with trading now underway under the new structure.

Policy & Central Bank

Central Bank Responds to Inflation Spike

The Central Bank submitted a formal explanation to the government after December inflation hit 4.5%, moving above the target range. Officials pointed to seasonal factors but made clear they are watching closely and are prepared to act if inflation stays elevated.

Renewable Energy & Industry

Iceland Pushes Geothermal and Wind Leadership

Iceland is expanding its role as a global geothermal leader, exporting expertise to international projects while advancing its first large-scale wind developments at home. New power agreements tied to data and ai demands underscore Iceland’s positioning as a hub for next-generation renewable energy.