WRAPUP 3-Russia gives banks extra $36 bln to fight crisis

* Medvedev pledges extra $36 billion for Russian banks

* Move fails to rally Russian stocks

* Russia confirms talking about loan to Iceland

* Oil firms seek state funds, tycoon scraps asset split

By Gleb Bryanski and Michael Stott

MOSCOW, Oct 7 (Reuters) - President Dmitry Medvedev announced an extra 950 billion roubles ($36.4 billion) of long-term help for banks at an emergency Kremlin meeting on Tuesday, but failed to rally Russian stocks.

"The whole point of our work is to make decisions as quickly as possible," Medvedev told reporters. "Speed is now priceless."

Russia, which has large foreign exchange reserves and is rich in oil, gas and metals, had looked among the better placed nations to withstand the global financial crisis but Moscow has been among the worst affected markets.

In a surprise move, Iceland said it wanted Russia to extend a 4-billion euro ($5.4-billion) loan from its huge reserves to strengthen the Nordic island's currency.

Finance Minister Alexei Kudrin said Moscow viewed the request "positively" and would make a final decision on it after negotiations with Icelandic officials.

Kudrin also said the extra funds for banks, offered for periods of at least five years, would help ease the credit crunch by allowing banks to lend over long periods.

Of the money, 500 billion roubles would come from the central bank and the rest from the state budget, he said. Much of it would be funnelled via state savings bank Sberbank (SBER03.MM).

The crisis meeting took place in the Kremlin one day after Russian stocks suffered their heaviest one-day falls. The dollar-denominated RTS index collapsed by 19.1 percent as panic gripped the market and investors fled to safe havens.

MEDVEDEV MOVE FAILS TO IMPRESS MARKET

Tuesday's bailout sparked a brief stock market rally but it quickly petered out and Russian shares touched new three-year lows. The rouble-based MICEX index closed 0.96 percent down at 744 points, and the dollar-based RTS ended the day 0.95 percent down at 858 points.