Russian President Vladimir Putin Tuesday fired his defense minister over a corruption scandal, the most dramatic change to the government since he returned for a third Kremlin term amid rising discontent.

Putin replaced defense minister Anatoly Serdyukov with Moscow region governor and former emergencies minister Sergei Shoigu.

Analysts said that the sacking of a top official who had enjoyed Putin's unconditional support was aimed at instilling fear in the elites as the Russian strongman struggles with the worst political crisis of his almost 13-year rule.

Putin said Serdyukov, one of three people in Russia with access to nuclear launch codes, had been relieved of his duties so that a thorough investigation can proceed into a suspected $100 million property scam at a defense ministry holding company.

"I have made a decision to relieve defense minister Serdyukov of his post in order to create conditions for an objective investigation of all the issues," Putin said in televised remarks.

A former furniture salesman who rose to head the Russian tax authority, Serdyukov became the first civilian to serve as post-Soviet Russia's defense minister when he was appointed in 2007.

His lack of military credentials and controversial military reform program earned him derision in the defense ministry.

In the past Putin had repeatedly resisted calls from within the military for Serdyukov to leave his post.