The An-12 cargo plane with nine crew members on board was en route from Chelyabinsk to Perm when it crashed to the north of Chelyabinsk on Monday evening.
"The family of each crew member will be paid an estimated 2 million rubles. The amount could be increased because some of them had small children," said Gennady Kurzenkov.
He said that the compensation would be paid by the Moscovia airline, the plane owners, and added that other funding could also be found.
Alexander Neradko, the head of the Federal Air Navigation Service, said the investigation into the accident could continue for more than a month.
The emergencies ministry said on Monday that an air traffic controller had received a message from a crew member shortly after takeoff from Chelyabinsk airport, saying smoke was entering the pilot's cabin and that the crew had decided to return to the airport for an emergency landing. The plane then disappeared from the radar screen.
Vyacheslav Latunkin, a spokesman for the local department of the emergencies ministry, said the plane had most likely hit an electric power line during the emergency landing. The plane's black box was found yesterday, and will soon be decoded.
However, Neradko said the crash could have been caused by a short circuit.
The last major accident involving an An-12 cargo plane occurred last July, when a plane crashed near Moscow's Domodedovo Airport shortly after takeoff, killing all seven crewmembers. The accident investigation concluded that the crash was caused by birds that had been sucked into the plane engines on takeoff, causing two of the four engines to stall.
