Measures include:

• Stepping up the state privatisation programme.
• The government's stake in 10 key companies, including the one remaining state oil company Rosneft, are to be sold by the end of the year to boost the government's coffers.
• Federal budget spending is to be cut by 42bn roubles this year, with at least 15bn roubles expected to be added to the budget by accelerating privatisation.
• Tax arrears worth at least five billion roubles are to be collected from at least 20 major debtor firms by the end of June.
• Accelerated bankruptcy procedures will be applied to companies if they fail to pay up.

Heads to roll

The shake-up in the tax service came a day after President Yeltsin warned that heads would roll over Russia's continued feeble revenue collection performance.

The shortcomings in tax revenues are one of a number of factors that the current financial crisis in Russia is blamed on.

The rouble is suffering in the financial crisis

The International Monetary Fund has frozen the latest installment of a $9.2bn loan pending improved revenue collection results.

A senior official of the IMF is expected to make a statement on the release of the loan on Friday.

The government needs the money to stabilise the markets and meet its mounting bills.

The new measures single out oil companies for particularly harsh treatment, threatening to link their access to international pipelines with prompt tax payment.

In another meeting about tax later on Friday, Prime Minister Sergei Kiriyenko is expected to change Russia's bankruptcy rules, and will examine in detail 20 major enterprises dodging tax payments.