▁of ▁the ▁union ▁in ▁ 1 5 2 3 . ▁After ▁the ▁union , ▁I cel and ▁was ▁ruled ▁by ▁Den mark ▁until ▁obtain ing ▁its ▁independence ▁( under ▁a ▁Dan ish ▁constitution al ▁mon archy ) ▁in ▁ 1 9 1 8 . ▁On ▁ 2 7 ▁July ▁ 1 9 4 0 , ▁both ▁I cel and ▁and ▁Sweden ▁established ▁diplom atic ▁relations . ▁In ▁June ▁ 1 9 4 4 , ▁I cel and ▁became ▁a ▁republic ▁and ▁both ▁nations ▁opened ▁emb ass ies ▁in ▁each ▁other ' s ▁capit als , ▁respectively . ▁During ▁World ▁War ▁II ▁both ▁nations ▁remained ▁officially ▁neutral , ▁however , ▁I cel and ▁was ▁inv aded ▁by ▁the ▁al lies ▁and ▁used ▁as ▁a ▁base ▁while ▁Sweden ▁uno fficial ly ▁assist ed ▁the ▁al lies . ▁ ▁Since ▁the ▁establishment ▁of ▁diplom atic ▁relations ▁between ▁I cel and ▁and ▁Sweden , ▁both ▁countries ▁have ▁act ively ▁participated ▁in ▁the ▁international ▁ar ena ▁to ▁discuss ▁issues ▁affect ing ▁the ▁Nord ic ▁nations ▁such ▁as ▁climate ▁change , ▁Ar ctic ▁policy ▁and ▁in ▁mut ual ▁defense ▁outside ▁of ▁NAT O . ▁Both ▁countries ▁have ▁participated ▁in ▁foreign ▁exped itions ▁such ▁as ▁in ▁Afghan istan ▁with ▁the ▁International ▁Security ▁Ass istance ▁Force . ▁ ▁During ▁the ▁I cel and ic ▁financial ▁crisis ▁from ▁ 2 0 0 8 - 2 0 1 1 , ▁Sweden ' s ▁National ▁Bank ▁issued ▁a ▁ 5 ▁billion ▁Swedish ▁K ron a ▁( € 5 2 0 ▁million ) ▁to ▁I