Kremlin Extends $2B Bailout To Wealthy Oligarch · The Russian government reportedly allowed Alfa Group, a conglomerate controlled by Russian billionaire Mikhail Fridman, to tap $2 billion from its $50 billion rescue fund to payback a bank consortium led by Deutsche Bank. A default would have forced Fridman to relinquish his 44% stake in Russia's Vimpel Communications, which he had pledged to the consortium as loan collateral. (WSJ)

Barclays Seeks Capital From Russian Banks · Barclays is reportedly pursuing investments from two state-backed Russian banks, VTB and Sberbank, in an effort to avoid selling equity stakes to the U.K. government to maintain capital requirements.  Barclays said it plans to raise $10.43 billion from private sources. (WSJ)

China To Lend $25B To Russian Firms Hit By Credit Crisis · China is reportedly in talks to extend up to $25 billion to Russian oil companies hit by the credit crisis in exchange for access to 300 million tonnes of Russian oil over the next 20 years. (Reuters)

OPINION Vali Nasr: Obama Is Right On Iran Talks · Diplomacy with Iran will not only help there, but also in containing Russia, argues Vali Nasr. (WSJ) The U.S. should allow Iranian gas to reach Europe and engage them on talks over the Caucusus.  Nasr is a professor at Tufts' Fletcher School and a senior fellow at the Council on Foreign Relations.

Russian Oil Giants Seek Gov’t Aid · Russia's four oil majors are asking Moscow for help to cover $80 billion in international loans. Gazprom, Rosneft, Lukoil and TNK-BP say they need the help to avoid cutting output. (Barents Observer)

OPINION Kissinger, Shultz: U.S. Should Build Common Ground With Russia · The United States should end the drift towards confrontation with Russia, write two former Secretaries of State, Henry Kissinger and George Schultz. They argue that isolating Russia is not a feasible long-term policy. (Washington Post)

Russia Exits Georgian Areas · Russian troops pulled out of the buffer zones inside Georgian territory adjacent to the breakaway regions of South Ossetia and Abkhazia, Georgian and Russian officials said. (Deutsche Welle)

Russia Suspends Trading, Medvedev Steps Fail To Reassure · Russia halted trading on the ruble-denominated Micex Stock Exchange until Friday and shut the dollar-denominated RTS exchange indefinitely after President Dmitry Medvedev's latest $36 billion injection into the banking system failed to halt the markets' slide. (Bloomberg)

Russia Says Georgia Using Terrorism To Invoke Conflict · Russian accused Georgia of committing terrorism to invoke a new conflict in the region but said it would comply with the agreement to pull its troop out of Georgia by Oct. 10.(Bloomberg)

Georgia Blast Kills Russian Soldiers · Seven Russian soldiers were killed when a car seized by the troops blew up in Georgia's breakaway region of South Ossetia. It's unknown whether the blast was intentionally triggered. (BBC)

OPINION: Russian Liberals Must Find Alternative To Putin · Liberalism has died in Russia, argues Russian academic Boris Kapustin. Instead of waiting for a severe economic crisis that can undercut Putin's authority, they need to find a compelling alternative that can resonate with the public and prompt democratic courses of action. (Moscow Times)

EU Monitors Begin Patrol In Georgia · The European Union deployed 200 civilian monitors across parts of Georgia. Russian troops allowed them into the buffer zone around South Ossetia despite earlier threats by Russia that it would bar them from the area. (IHT)

Russia Rehabilitates Last Tsar · Russia's Supreme Court formally rehabilitated the country's last tsar, Nicholas II, declaring he and his family were unlawfully killed by Soviet authorities in 1918. (BBC)

Russia-Ukraine Tensions Rise In Crimea · Russia's growing assertiveness in former Soviet states, and the Ukraine's determination to join NATO have led to rising tensions in the semi-autonous penninsula of Crimea.  (LA Times)  Many Crimean residents say they are Russian first, Ukrainian second.

Russia, Venezuela To Cooperate On Energy · Russia and Venezuela have agreed to cooperate in oil and natural gas development. Presidents Dmitry Medvedev and Hugo Chavez met in Siberia Friday to ink a deal that also includes a $1 billion loan for Venezuela to buy Russian weapons. (Platts)