Historically, Islandia was governed by Dania and the Danian minority on Islandia received preferential treatment as rulers and local aristocracy.

However, Islandia soon became a centre of disputes between its native inhabitants and settlers from Dania who moved to the island. During the time of Danian supremacy, many Islandians were forcibly removed to Vendia (before the civil war of 1990-95 the Northernmost province of Dania) to work in the fishing industry.

This minority grew and prospered but retained close cultural ties with Islandia. Disputes between Danians and Islandians went on for many years, finally resulting in a revolt which lasted from 1914 to 1918, after which Islandia became an independent state and Danian supremacy was ended after more than 500 years. Even today, the revolt of 1914 to 1918 exercises a strong influence on the minds of the Islandian population and the remaining Danian minority.

The International Court of Justice in The Hague settled the revolt on the 14th of September 1918 and the following governments of Islandia were recognized by the International Community (IC). Islandia is a member of the UN and has ratified the 1949 Geneva Conventions and the 1977 Protocols. Following the peace Islandia sought Farawayland for help to build their administration and governmental apparatus and Farawayland has a permanent elite of advisors living in Islandia with their families.

Islandia has close military ties to Farawayland and has spent a large part of its GNP on military hardware from Farawayland during the last decade in order to maintain its sovereignty. After the 1918 peace, Islandia and Farawayland signed a bilateral agreement, whereby Farawayland would guarantee Islandia´s security until an independent Islandian military could be formed and would be strong enough to enforce its own sovereignty.

Though this was completed many years ago, the coalition is still very real and has been extended to comprise a permanent diplomatic clearance for Farawayland’s naval vessels to be in Islandian waters.

The residing president Mr. Hans-Christian Johnson is considered a hardliner who has gradually stripped the Islandian parliament for power while founding a powerbase on a combination of the exploitation of the oilfields and the instigation of ethnic animosity.

 Islandias military capacity is centred on a large army, a small insignificant navy consisting of a few FPBs Tansportships and patrolboats and several well equipped air stations, incl. logistic facilities and air defence, but no dedicated attack aircraft.