Russian Prime Minister Vladimir Putin has signed a resolution that significantly reduces the number of NGOs eligible for tax breaks in Russia.

The decree, which will come into force in January, cuts the number of organisations eligible for tax-free payments from 101 to 12, leaving large international groups such as the Ford Foundation, the Royal Society and the Eurasia Foundation off the list.

The move has been seen by some NGOs as part of a wider government attempt to curb the activities of foreign organisations.

Pyotr Gorbunenko, managing director of the World Wide Fund for Nature in Russia, told the Financial Times that he believed the change to be politically motivated.

'I think this is a result of efforts of our intelligence forces...those who already introduced practically full control of the state over the activities of NGOs. This is the next step in the previous line,' he said.

However, the government argues it is simply a bid to make existing tax rules more transparent.

Government official Alexander Smirnov told The Moscow Times that international NGOs who were not on the new list could apply for inclusion prior to new rules coming into effect, and would continue to attract tax free status in the meantime.

‘This is a completely democratic and transparent measure,’ said Smirnov.