JSC Alfa Bank, the Russian private bank founded by billionaire Mikhail Fridman, is scaling back lending for all but the most affluent clients after a growing share of customers fell behind on payments this year.

Russia’s government has acknowledged for the first time that the economy is in crisis, undermining earlier attempts by officials to suggest weakening growth could weather sanctions over Ukraine.

Companies from four European nations today signed an agreement with Russia’s natural gas monopoly Gazprom to be supplied by a new pipeline – a project that has raised concerns about increasing European dependence on Russian supplies.

RUSSIAN gas monopoly Gazprom said net profit doubled in the first half of 2006 as prices for gas in Europe and Russia rose and the firm sold bigger volumes.