Siguler Guff backs Russia’s economy with $250m for innovation hub

The centre at Skolkovo, a village which has been likened to a Russian version of Silicon Valley, is a project initiated by Dmitry Medvedev, the country’s president, who is pushing to modernise the country and reduce its reliance on the cyclical oil and gas industries.  

Siguler Guff is currently the first overseas investor in the project and will invest $250m in digital infrastructure and IT services at the site.

The US and emerging markets investor is said to be attracted by the 13 per cent income tax in Russia and does not look put off by potential corruption and the murky bureaucracy often associated with the country.

The Kremlin plans to invest $190m for the construction of the innovation centre and is looking for private investors to support the hub as an incubator for IT, biomedical research, alternative energy and nuclear technology projects, the report said.  

The Russian government is also in talk with corporates over support for the initiative; Cisco and Nokia are just two names said to be considering investments in Skolkovo, which will be overseen by oil and metals tycoon Viktor Vekselberg and counts the former head of semiconductor giant Intel, Craig Barrett, as a co-chairman of its supervisory board.

Russia is home to only 20 venture capital funds worth a combined total of just $2bn.

Copyright © 2010 AltAssets