February 4, 2023

Russia will allocate 20 billion to support blockchain, AI, VR, AR

Russia will allocate 20 billion to support blockchain, AI, VR, AR

The Russian government wanted to support startups and projects that are actively promoting "Digital Economy" technology. It is planned to allocate 20 billion for this, and in the future the volume of support may triple. It sounds great, but business representatives greeted the initiative with disbelief.

Authorities support AI and blockchain

For the financial support of projects will be createda separate fund to be managed by Rusnano. With it, authorities will be able to invest in projects that bring products to the market using technologies that are significant for the Digital Economy. These include blockchain, artificial intelligence, VR, AR, robotics, sensorics and quantum computing.

Initially, the government will allocate 20billion rubles. Another 1.5 billion can be allocated for a separate fund, focusing exclusively on small and medium-sized businesses. This means that the money from the main fund will go to large companies. By 2024, the fund may grow up to 60 billion, but already at the expense of extrabudgetary funds. Whether this happens or not depends on the desire of investors to participate in the undertaking.

The main fund will invest at least 100 millionin one project, a maximum of 3 billion each. If one company immediately works on several technologies related to the Digital Economy, they will be able to receive a separate portion of money for each of them.

Financial support will stand out in thatin case the company has a successful operating time or idea that has a high chance of commercial success, but the company does not have enough funds to launch it fully. Thus, everyone should benefit from this: the state stimulates the digital economy, and the business receives additional funds for the release of innovative solutions.

Business disagree

Business representatives have already criticizedan idea. According to experts, Rusnano already manages many investment funds, the total amount of which exceeds one trillion rubles. Moreover, other government players have similar funds. As a result, it is completely incomprehensible how all these funds differ from each other, and why they even exist.

Business believes that it would be much more efficientinvest these funds in some existing fund. It would be even better to combine all funds aimed at supporting modern technologies and innovations in one structure. It would be easier for business to focus on the field of state support, and the government would avoid unnecessary expenses for the maintenance of a heap of funds.