OREANDA-NEWS. November 10, 2009. The Supervisory Council of the Russian Corporation of Nanotechnologies, RUSNANO, has approved formation of the International Nanotechnology Investment Fund, the first fund of its kind. The fund with have initial capital of USD 1 billion.

The fund will extend the investment potential of the corporation by involving institutional and strategic co-investors from home and abroad in Russia’s nanotechnology projects. RUSNANO intends to use the fund to transfer cutting-edge technology to Russia, to draw international expertise to nanotechnology projects, and to stimulate development of financial infrastructure in the nanotechnology sphere.

RUSNANO's share in the fund will not exceed 50 percent. It is expected that the fund will be registered in the United Kingdom (not in the offshore zone). Foreign jurisdiction is more convenient to foreign investors; and it opens wider access to foreign technology, intellectual capital, and international expert project evaluation. The fund will be formed beginning in the last quarter of 2009 through the second quarter of 2011.

To ensure corporate and investment control of this and other funds, the Supervisory Council of RUSNANO approved creation of a wholly owned subsidiary, Rusnano Capital. RUSNANO CEO Anatoly Chubais was appointed Chairman of the Board of Directors of Rusnano Capital.

Additionally, RUSNANO developed numerous measures guaranteeing that the fund’s resources will be used purposefully and effectively: The Investment Committee of the fund will include a representative from RUSNANO with veto rights. The projects of the fund will have to pass the corporation’s expert evaluation procedures. Representatives from Rusnano Capital will sit on boards of project companies. Systems will be developed for financial and managerial reporting of the fund and the project companies it supports.