Russian government to hold $76 million share in new IT investment fund

ST. PETERSBURG, July 29 (RIA Novosti) - The government's estimated share in an investment fund of technology and innovation, which is meant to boost IT development in Russia, will amount to $76 million.

The Information Technologies Ministry proposed the investment fund project, which is expected to amount to $100 million. It is being considered by the Trade and Economic Development Ministry and the Finance Ministry.

Dmitry Milovantsev, Deputy Minister of Information Technologies, said after a meeting on the creation of an IT park in St. Petersburg that several years after the fund's establishment the government would withdraw from it in favor of private investors.

"We hope the fund will serve as a catalyst for the development of small and medium-size companies," Milovatsev said.

According to the Information Technologies Ministry, the fund will attract $1.2-$1.6 billion within three years for the implementation of IT projects. Currently, investment in this sector does not exceed $80 million a year against the needed $450-$600 million a year.