The state will spend 30 billion rubles ($1.2 billion) on building a headquarters in Moscow for its new nuclear corporation, said Denis Kozyrev, coordinator of the project, Vedomosti reported Wednesday.

The 300,000 square meters of office space will house Rosatom, the country's nuclear energy and arms industry holding company; its energy unit Atomic Energy Power; and an experimental physics institute, the newspaper said. Construction will begin in 2009 and be completed at the end of 2011, Vedomosti said.

The United Aircraft Corporation, a new state grouping of airplane design and manufacturing companies, plans to build a whole town near Zhukovsky, in the Moscow region, the newspaper said.