Both the Development Bank and the Russian Venture Company are designed to encourage further private investment in expensive infrastructure and high-risk venture projects, which will be realized with state financial support.
"The capital of the Development Bank will be increased to 250 billion rubles ($10 billion) and the capital of the venture company will be raised by 15 billion rubles ($584 million)," Arkady Dvorkovich said, adding it would require revision of the 2007 budget parameters.
In his state of the nation address to parliament Thursday, President Vladimir Putin proposed investing 300 billion rubles ($12 billion) in 2007 to finance state and institutional development mechanisms, including the state Development Bank and the first national venture company project.
The initial charter capital of the Development Bank is projected to reach 70 billion rubles ($3 billion). The bank will be formed through a merger of three state-run banks -Vnesheconombank, the Russian Bank for development RosBR, and Roseximbank.
The Development Bank will attract loans and investment in projects, which will be co-funded from the state Investment Fund. The fund will receive 100 billion rubles ($4 billion) annually under the 2008-2010 federal budget.
Russia's venture company is a project pursued as part of an effort to revitalize the country's industrial base as it seeks to diversify the economy away from commodity exports. The money, which is the government's 49% share in the company, will be invested in venture funds run by professional management companies.
