Franz Joseph Land was colonised by Austro-Dalmatia. At the collapse of the Austrian Empire the population was around 2000, most of whom were brave pioneers. However there were a few shipments of radical Dalmatians who were exiled there by the Austrian government. The colony was basically self sufficient with an economy similar to Iceland's (ie fishing), so the majority of the population was poor. However, they were a prideful lot too, and the current population is just over 10,000. During the colonial times a good deal was invested in the islands because they were viewed as strategically important, and it was there were the first Tesla-type Static-Electricity-Collecting powerplant was put into service (initially on a test basis; Nikola Tesla himself spent three months there). This is still operational and provides free electricity to the populace, in turn providing heat and light etc.
Following the collapse of Austria and the victory of SNOR in Russia, the Russians occupied Franz Joseph Land and incorporated it into their territory. Interestingly, they didn't interfere much with the inhabitants, which allowed them to keep the Dalmatian language, though the dialect spoken there now has a good deal of Russian influence (mainly loanwords) and is written in Cyrillic. The Russians never really did much with the islands apart from operating a few meteorological and other scientific research stations. Russia did supply the islands with various goods and the fisheries were nationalised, meaning the Dalmatian fishermen were paid from a central company in Moscow (or elsewhere?). After the fall of the SNOR the people didn't receive their salaries anymore and the delivery of goods from Russia ceased completely, resulting in hunger and poverty and the population of the islands turned to Dalmatia for assistance. Dalmatia did and continues to supply aid to the territory (since renamed to Noa Dalmatia, "New Dalmatia"). The territory operates as a semi-independent country with military and foreign affairs managed from Raguza, but little interference in domestic territorial affairs. As an overseas protectorate of Dalmatia, they are an Associate (non-voting) member of the KSD, and were they to ever attain independence (which they might eventually ask for, given their nature and the fact that a somewhat different culture developed due to Russian influence), they would be granted full status in the KSD.