[quote=So Boerd]
They have nowhere else to go, and Finland is with Sweden for historic and pragmatic reasons. Orkney will be returned to whoever wants it, but a Falkland style occupation will take Shetland.
[/quote]

The UK is still a significant military power and they'd be quick to move in. Their naval power may have decreased since World War 2, but they still got the big guns and the means to shell and over-take an occupying force, even with naval denial.