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. Last Updated: 07/27/2016

Medvedev Raps Rusnano Model

President Dmitry Medvedev on Wednesday criticized the country's strategy of developing its technology sector through state-owned corporations, singling out the State Nanotechnology Corporation, or Rusnano, as an example.

Speaking at a meeting with the winners of a worldwide programming contest, Medvedev said developing the country's IT industry through the creation of large, state-owned companies like Rusnano, which is currently headed by former Unified Energy System chief Anatoly Chubais, was "unlikely" to prove successful.

"[Rusnano] is the kind of instrument that sometimes works and sometimes doesn't work at all," Medvedev said. He called the company a "large structure that has a lot of money and that still has to understand how to correctly spend it" so that it is not blamed for wasting it in the future.

He added that the IT industry would not develop without the success of small and midsize companies.

Rusnano was formed in 2007 to stimulate the country's nanotechnology industry by offering cheap loans to promising, up-and-coming companies in the sector.

The government expects that Russia will capture about 3 percent of the global nanotechnology market by 2015 and has set aside at least 130 billion rubles ($3.9 billion) for the company to invest in the industry.