A spokesman for the Federal Agency for Nuclear Power said, "The fund would finance innovative projects in civilian electric power, electronics, clean materials, and water supplies developed by research institutes."
The fund, which could be launched in late 2006 or early 2007, would initially receive $30-$40 million in government funds, and its total volume is expected to reach $300-$400 million, the source said. The agency is currently in talks with private Russian firms on joint investment projects.
The spokesman said state funds would be allocated on the condition the projects were 50% co-financed by private investors. The idea is still at the discussion stage, and the agency's fund could emerge as a sub-fund of a venture fund to be opened by the Economic Development and Trade Ministry, he said.
The ministry is currently forming a venture company which would consist of at least 10 sectoral venture funds, as part of an effort to revitalize the country's industrial base and diversify the economy away from commodity exports.
The ministry said earlier the government would invest between 600 million rubles ($23 mln) and 1.5 billion rubles ($56 mln) in the venture funds' charter capital, but that its control would be limited to 49% of stock.
The ministry said it would announce tenders on management companies for venture funds by the end of the year or early 2007.
However some experts fear the idea of venture funds, extensively used in developed countries, might not work in Russia, where businesses are heavily focused on raw materials production and exports.
