Wed Oct 15, 2008 8:18am EDT

By Patrick Lannin and Omar Valdimarsson

REYKJAVIK (Reuters) - Iceland moved to shore up its ravaged economy by slashing borrowing costs on Wednesday and officials pursued efforts to get help from Russia in tackling the worst financial crisis in the island’s history.

The central bank cut its main interest rate to 12 percent from 15.5 percent, hours before Prime Minister Geir Haarde was due to address parliament on how the government is coping with a crisis