The move to sell off Gazprom, which was postponed in August, is a sign of the growing need for cash by the government, which is facing a 60bn rouble ($4bn) budget deficit this year.

High expectations

Analysts say that at today's depressed prices, a 5% stake in Gazprom could raise around $130m.

Before the crisis, the 5% stake was worth 10.3bn roubles (then equivalent to $1.65bn).

Since then, Gazprom stock has dropped sharply to $0.04.

Analysts are now warning that the sale could yield much less than the government expects.

"It is hard to be optimistic," said energy analyst Matthew Thomas of Creditanstalt Investment Bank.

"It is not clear whether you have made a deal with a company or a ministry," he added.

The share sale will be open to Russian and foreign investors, but the buyer must promise to retain the stake for five years.

Printed roubles

Economic chief plans to print 12 billion roubles

Last week, an IMF team ended a 10-day visit to Moscow, singularly unimpressed with Prime Minister Yevgeny Primakov's attempts to close the deficit by investing in collapsed Russian industries.

In desperation, Communist economy chief Yuri Maslyukov said that the government would print no more than 12bn roubles ($759m) by the end of the year.

This would be combined with a plan to radically cut taxes, which would lift the burden of VAT and profit tax on industries and boost production.

Budget deficit

Russia's federal budget deficit in January to August 1998 was 56.2bn roubles, or 3.5% of GDP, according to the State Statistics Committee.