The newly formed inner cabinet or presidium will meet on a weekly basis to discuss key issues, while 'regular' Cabinet meetings will be held at least once a month.
At the first meeting, the presidium will focus on tax policies for 2009-2011, including reducing oil duties and introducing seven-year tax privileges for companies prospecting and developing oil and gas deposits.
The inner Cabinet will also consider new and existing regulations following changes to the government's structure.
The new government structure will comprise 17 ministries, including the new ministry of industry and trade, communications ministry, culture ministry, natural resources and ecology ministry, economic development ministry, and energy ministry.
The government will also have a new ministry of sports, tourism and youth policy, to be led by the head of the Russian Football Union, Vitaly Mutko, and a federal agency for CIS affairs.
Several ministerial agencies, including the Federal Agency for Industry, the Federal Agency for Construction and Housing and Communal Services, the Federal Agency for Public Health and Human Services, are to be scrapped.
The development comes amid an ongoing redistribution of presidential and governmental powers following Putin's move from president to prime minister.
