Russia is priming a rescue mechanism for companies on the verge of bankruptcy, an emergency measure that may be taken to contain fallout from the country's first recession in six years.

Prime Minister Dmitry Medvedev signed a government decree that enables cash-strap d companies to receive state guarantees for debt refinancing, provided their "special significance" for parts of the economy merits a lifeline, according to a document released Wednesday.

The move shows the lengths that authorities are willing to go in their effort to head off discontent as a recession gripping the nation of 143 million puts livelihoods at risk. While the poverty rate has soared and with President Vladimir Putin conceded state resources are stretched, the government is trying to keep a lid on unemployment to prevent unrest.

Russian President Vladimir Putin (L) remains popular with Russians but there are deep concerns in business about the risks to the economy. RIA/AP

The government is expanding a key instrument of its anti- crisis plan unveiled in January, which allocated 200 billion rubles ($US3 billion) for state guarantees on loans or debt issues by companies. It's the same tool used to stave off an industrial collapse and rescue banks six years ago, when Russia spent more than 3 trillion rubles on stimulus measures, including state guarantees on loans.

Few companies have won state backing so far. The government agreed to provide loan guarantees of 16.7 billion rubles to Russian tank and railcar maker Uralvagonzavod, according to Interfax. In March, the company said it had asked for guarantees of as much as 60 billion rubles.