Russia's finance minister hailed a "turning point" in boosting vital tax revenues, but an international agency cut the country's credit rating yesterday and warned of big political battles ahead.

Prime Minister Mr Sergei Kiriyenko and Finance Minister Mr Mikhail Zadornov met foreign investors to brief them on planned austerity measures part of an agreement with the International Monetary Fund (IMF) and other lenders who have pledged loan support totalling $22.6 billion.