ORKNEY has announced it is preparing for Brexit by returning to its Viking roots.

The Islands Council is to forge links with Scandinavian and Arctic states as it tries to find new sources of revenue to replace EU grants.

The plan is focused on countries to the north and east of the islands, such as Iceland and Norway, with which Orkney has historic ties.

The archipelago was a Norse settlement for almost 600 years after being invaded in 875.

James Stockan, leader of the Independent-run council, said: “European funding has been of considerable importance to our islands over the past 40 years.

“Whatever agreement or non-agreement is reached, Brexit will have considerable consequences for Orkney, our community and the Council itself.

“Rather than wait and see, we are actively exploring new links and economic opportunities that could complement or replace some of the sources of European funding that have so benefited our community over four decades.”

Cllr Stockan said discussions started at last month’s Nordic Council in Oslo, which included representatives from Denmark, Finland, Iceland, Norway and Sweden as well as the Faroe Islands, Greenland and the Åland Islands.

The Islands Council also took part in the recent Arctic Circle Assembly in Iceland, attended by more than 2,000 participants from 60 countries including heads of states and governments, ministers, experts, scientists, entrepreneurs and business leaders.

He said Orkney was promoting itself as a key location place for pioneering renewable energy and hydrogen generation projects, as well as a tourist destination.

Liam McArthur, the Scottish LibDem MSP for Orkney, said: “It’s clear that Brexit poses a big risk to Orkney’s economy, as it does to the rest of the country. As a community, we have always prided ourselves on being outward looking and blessed with a ‘can do’ attitude.

“It is right, therefore, that Orkney Islands Council is looking to establish and strengthen these links with other countries, links that build on our historic ties with countries to the north and east.