MOSCOW, May 30 (RIA Novosti) - Russia will establish a government venture capital corporation with a charter capital of 15 billion rubles (about $555 million), a deputy economics minister said Tuesday.
"This will be a public company with a 100% government stake and a charter capital of 15 billion rubles, which will be contributed to privately managed venture capital funds," Andrei Sharonov told an investment forum in Moscow.
He added that the Economic Development and Trade Ministry intended to submit a draft resolution to the government by June 27 on the establishment of the Russian venture capital corporation to operate as a parent company for venture capital funds. Sharonov said from eight to 15 venture capital funds were to be established in Russia.
Sharonov also said the state's stake in venture funds' charter capital would range from 25% to 49%, with private investors contributing the remainder.
Venture capital funds will be established in the form of closed-end unit investment funds with charter capital of 1 billion to 3 billion rubles ($37 million-$111 million).
Sharonov said the state expected to make back its investment in venture capital funds and receive a minimum profit of about 3% per annum.
If venture capital investment proves a success, the state will be able to withdraw from the sphere, Sharonov said, citing the experience of Israel, where a government venture capital company had been eventually sold on the market.
