russian corporation - rusnano€¦ · 500 individuals; 80 percent had earned degrees of doctors of...

RUSSIAN CORPORATION OF NANOTECHNOLOGIES ANNUAL REPORT 2009

Transforming technology into business

Contents

1 Project Consideration ..........................................2

1.1. Types of Projects Considered by the Corporation ...........................2

1.2. Requests for Financing: Stages of Review ...............................2

1.3. Entry Review .......................................2

1.4. Science and Technology Expert Evaluation .............................2

1.5. Investment Evaluation ...................3

2 Project Activities of the Corporation .................................4

2.1. Review of Requests and Acceptance of Projects (Summary) ...................4

2.2. Review of Requests Not Conforming to Requirements of the Corporation ............................7

2.3. Manufacturing Projects .................7

2.4. Infrastructure Projects ...................8

2.5. Educational Programs ................. 10

2.6. Joint Venture Funds ...................... 11

3 Management of Project Companies ....................... 13

3.1. Corporate Management ............. 13

3.2. Treasury (Disbursement) Control over Spending Funds Invested in Project Companies ................... 15

4 Role of the Corporation in Creating an Environment for Innovation ....................................... 16

5 Role of the Corporation in Stimulating Demand .................... 18

6 Public Affairs ........................................................ 19

7 International Activities and the Nanotechnology International Forum .......................... 21

8 Management Bodies of the Corporation .............................. 24

8.1. Supervisory Council of the Russian Corporation of Nanotechnologies .................. 24

8.2. Science and Technology Board of the Russian Corporation of Nanotechnologies .................. 24

8.3. Committee for Investment Strategy of the Russian Corporation of Nanotechnologies .................. 25

8.4. Executive Board of the Russian Corporation of Nanotechnologies .................. 25

9 Planning, Budgeting, and Procurement Processes of the Russian Corporation of Nanotechnologies ......................... 26

9.1. Planning and Budgeting ............ 26

9.2. Procurement ................................... 26

Highlights from 2009 .................................... 29

Appendix A Brief Descriptions of Projects Approved by the Supervisory Council of the Russian Corporation of Nanotechnologies in 2009 .................................................................. 30

Appendix B Members of the Management Bodies of the Corporation as of December 31, 2009 .............................. 44

Appendix C Primary Documents Regulating the Activities of the Russian Corporation of Nanotechnologies ....................................... 47

Annual Financial (Accounting) Report of the Russian Corporation of Nanotechnologies for the Year 2009 ............................................. 48 Auditor's Opinion on the Financial (Accounting) Reports ................................. 50

Results of Monitoring the Implementation of Projects Financed with Resources of the Corporation ......................................... 53

The mission, fundamental principles, and goals, along with the strategy of the corporation, are set forth in the Business Strategy of the Russian Corporation of Nanotechnologies to 2020, approved by its Supervisory Council in May 2008. That document is available at http://www.rusnano.com/Document.aspx/Download/17905. The corporation’s strategic activities are based on provisions of the presidential initiative Strategy for the Development of a Nanoindustry (№ Pr-688 approved April 24, 2007), the federal law On the Russian Corporation of Nanotechnologies (№ 139-FZ dated July 19, 2007), and instructions from the Government of the Russian Federation for realization of a nanoindustry in the Russian Federation to 2015 (№ VZ-P7-2702 dated May 4, 2008).

The mission of the corporation is to collaborate in the fulfillment of government policies to bring Russia into the group of world leaders in the sphere of nanotechnology. From this goal flows the primary charge to the corporation—to promote commercial-ization of nanoindustry developments and to coordinate innovative activity in that sphere.

The business strategy of the corporation contains indicators for measuring achievement of objectives, for example, by 2015 the value of nanoindustry goods produced by businesses created by the corporation and coinvestors must equal or exceed 300 billion rubles per year. Paying heed to the reverberating benefits of nanotechnol-ogy stimulus, the document requires that the nanoindustry in Russia as a whole by 2015 reach 900 billion rubles.

Investment projects are the most commanding instrument at the disposal of the corporation to satisfy its mandate.

http://www.rusnano.com/Document.aspx/Download/17905


2

1.1. Types of Projects Considered by the Corporation

The Russian Corporation of Nanotechnologies finances several types of projects to form nanotechnological production and the infrastructure vital to creation and growth of the nanoindustry:

Manufacturing projects: investment to establish or expand production of nanotechnology products;

Infrastructure projects: investment in objects that directly influence the rate of growth and the efficiency of the nanoindustry—innovation-technology centers and technoparks, information databases, normative-legal databases, and investment funds;

Educational programs: investment in the organization and operation of training centers and programs to ensure that the nanoindustry, including project companies established with RUSNANO’s participation, can call upon a capable workforce that will enable it to grow.

Synchronized implementation of these projects is fundamental to crafting a new economic model for our country—a model built and operating on innovation.

1.2. Requests for Financing: Stages of Review

Regardless of the type of project proposed to the corporation with a request for financing1, all requests proceed through a single, specially developed system of selection. Projects that relate directly to nanotechnology and offer realistic potential for commercial success—and nanoindustry infrastructure and education projects that meet other criteria—become applications that are refined following established procedures and brought by the Executive Board to the Supervisory Council for final decision.

Project Consideration

RUSNANO’s brochure 7 Steps to Establishing a Business describes and illustrates this process. The brochure may be downloaded at http://www.rusnano.com/Document.aspx/Show/19895.

1.3. Entry Review

All requests received by the corporation pass through an entry review. To formalize the process at this and later stages, the corporation developed Regulations Governing Processes in the Pre-investment Stages of Project Activity of the Russian Corporation of Nanotechnologies.

Entry review consists of three blocks. Document evaluation determines the standing of the materials and ascertains their conformance to Requirements for Composition and Content of Projects in the Area of Nanotechnology Proposed for Financing with Resources of the Russian Corporation of Nano-technologies in format, completeness of the materials, and their authenticity and consistency with information in the submission; possible duplication of an earlier request is excluded. The request is examined for indications of dual-use technology. Finally, the material is analyzed for the quality and safety of the products proposed, the technology to be employed in the project, and the validity of its metrological methods.

1.4. Science and Technology Expert Evaluation

The purpose of the science and technology evaluation is to render expert opinion on the relevance of the proposed work to the field of nanotechnology and the scientific justification and technical feasibility of the

1 Request for project financing (hereafter request) is a general term used within the corporation for project documents it has received, without regard for their completeness and quality.

http://www.rusnano.com/Document.aspx/Show/19895



3

project. Evaluation is conducted in compliance with internal documents, specifically, Procedures for the Science and Technology Expert Evaluation of Scientific Research and Experimental Design Development Projects, Grants, and Investment Projects by the Russian Corporation of Nanotechnologies (approved and implemented by order № 135 of the General Director of the Corporation dated December 30 2008).

Independent experts accredited by RUSNANO and professionals in the Department of Scientific and Technical Expertise of the corporation carry out the science and technology evaluation. As of December 31, 2009, the pool of independent experts contained 500 individuals; 80 percent had earned degrees of doctors of science; 19 percent, masters of science; 88 percent of the experts are citizens of the Russian Federation; 12 percent are foreign citizens.

In 2009 the corporation conducted 354 science and technology evaluations of which 105 were carried out by professionals in the Department of Scientific and Technical Expertise and 249 were performed in collaboration with independent experts. The evaluations resulted in recommendations for further consideration by the corporation of 164 projects.

1.5. Investment Evaluation

Investment evaluation ascertains the commercial advisability of cofinancing a project with resources of the corporation. This stage contains financial-economic, legal, production technology, patent, marketing, certification, and metrological analyses and analysis of risks.

Most prominent among the indicators during the financial-economic analysis

are income on the investment, earnings from realization of the nanotechnology products per ruble of investment by RUSNANO, and the level of risk that the project holds.

Production technology analysis produces findings on the technological realization of the proposed production, the scalability of the technology, and the readiness with which necessary materials and equipment can be acquired.

Patent analysis reveals any potential patent conflict in the production technology and the know-how that the project proposes to use.

Market analysis establishes parameters of the target markets (size, anticipated growth, opportunities to enter mixed markets), estimates the competitiveness of the proposed products, and determines the best model for promoting its goods.

Independent evaluation is made of non-monetary investment by the company-applicant and coinvestors, as is a comprehensive verification of all who are to take part in the transaction.

Depending upon the degree of project preparedness, additional expertise may be conducted at this stage: field tests of product specimens, assessment of the safety of products, evaluation of the extent of control that can be exercised over the technology and products in the proposed project, and other forms.

To ensure independence and high quality of evaluation, the corporation retains external organizations that specialize in conducting investment expertise. The companies are selected through competitive procedures.

Integrated circuits produced with 90-nanometer process technology,

for use when extremely large degrees of integration are required

RFID tags for automated retail systems and new generation

metalized packaging materials


4

2.1. Review of Requests and Acceptance of Projects (Summary)

The corporation received 634 requests for project financing during 2009. The requests contained budgets totaling 1.355 trillion rubles; 712.3 billion rubles (52.6 percent of aggregate budgets) were requested directly from RUSNANO.

From April 1, 2008, when RUSNANO began accepting applications, to December 31, 2009, the corporation registered 1,445 requests for project financing. The budgets for these requests totaled 2.079 trillion rubles; 1.258 trillion rubles (60.5 percent of aggregate budgets) were requested directly from RUSNANO.

Project Activities of the Corporation

Geographically, the requests were broadly distributed, coming from 222 cities in Russia and abroad. This is rep-resentation for nearly twice as many cities as in 2008, when requests were drawn from 115 cities.

Russian businesses and organization made the largest number of requests from the Central (291 requests, 52%), the Volga (100, 18%), the Siberian (59, 10%), and the Northwestern (50, 9%) federal okrugs. Requests came from three of the four remaining federal okrugs: 28 businesses and or organizations from the Urals; 23 from the Southern; and seven from the Far Eastern federal okrugs. Only the North Caucasian Federal Okrug was unrepresented.

In 2009 the corporation received seventy-six applica-tions from companies coming from 22 foreign countries (see fig. 2). This, again, is almost twice the number of requests when compared with the previous reporting period.

Analyzing the content of the 634 domestic and foreign requests for financing received in 2009, it is important to note that most sought funding to establish new pro-duction or to expand and modernize existing manufac-turing. Requests devoted to research and design work, which RUSNANO does not funded directly, declined significantly. By purpose of request, the applications were distributed as follows: manufacturing, 528 proj-ects; infrastructure, 21 projects; educational projects, 7 projects; scientific research and experimental-design work, 25 projects; other, 53 projects (see fig. 3).

RUSNANO received an average of 50 requests per month during 2009.

General information on the status of review of requests for financing and approval of projects at yearend 2009 appears in table 1.

Figure 1. Distribution of requests by federal okrugs of the Russian Federation.

CENTRAL FEDERAL OkRUG

VOLGA FEDERAL OkRUG

SIBERIAN FEDERAL OkRUG

NORTHwESTERN FEDERAL OkRUG

URALS FEDERAL OkRUG

SOUTHERN FEDERAL OkRUG

FAR EASTERN FEDERAL OkRUG

2009

2007-2008

291413

10084

5995

5076

2865

2327

711


Figure 2. Distribution of requests by foreign country and administrative region.

Table 1. Cumulative results and status of requests for cofinancing as of December 31, 2009 (rubles in billions, unless otherwise noted).

2009

2007-2008

UNITED STATES

ISRAEL

UkRAINE

GERMANy

FINLAND

ITALy

CANADA

BELARUS

KAZAKhSTAN

GREAT BRITAIN

HONG kONG (PEOPLE’S REPUBLIC

OF CHINA)

CyPRUS

OTHER COUNTRIES 911

1

3

2

2

1

1

21

1

1

1

1

5

43

10

513

318

REqUESTS RECEIVED By RUSNANO (CUMULATIVE)

Number 1,445

Budgets (in trillions of rubles) 2.079

RUSNANO share (in trillions of rubles) 1.258

REqUESTS UNDER REVIEw OR ASSESSMENT (APPLICATIONS)

Number 741

Budgets (in trillions of rubles) 1.487

RUSNANO share 868

REqUESTS IN ENTRy REVIEw

Number 484

Budgets 939.5

RUSNANO share 560.6

APPLICATIONS IN OFFICIAL STAGES OF ASSESSMENT

Number 257

Budgets 547.4

RUSNANO share 307.5

PROJECTS APPROVED By THE SUPERVISORy COUNCIL

Number 61

Budgets 192.3

RUSNANO share 92.4

PROJECTS RECEIVING FINANCING

Number 17

Budgets 99.5

RUSNANO share 53

Financing extended 32.2

REqUESTS DENIED FINANCING

Number 643

Budgets 399.7

RUSNANO share 297

INC

LUD

ING IN

CLU

DIN

GIN

CLU

DIN

G

Figure 3. Distribution of requests by project type, 2009.

MANUFACTURING 83%

INFRASTRUCTURE 3%

EDUCATION 1%

R&D/DESIGN ENGINEERING 4%

OTHER 9%


6

Figure 5. Distribution of projects approved by the Supervisory Council and falling within priority areas for modernization of the economy of the Russian Federation.

At the end of 2009 there were 257 applications with budgets totaling 547.4 billion rubles at various stages of assessment. They included requests for financing with resources of the corporation of 307.5 billion rubles, or 56 percent of the projects’ aggregate budgets.

When figures were tallied at yearend, a significant num-ber of projects were in processing stages after having completed the science and technology expert evalu-ation with positive conclusions. They number 66 proj-ects; their aggregate budgets are 177.5 billion rubles of which 83.7 billion rubles (47 percent of aggregate budgets) have been requested from the corporation. This portfolio of projects will be brought to the Science and Technology Board for its evaluation in the first and the second quarters of 2010.

During 2009 the Science and Technology Board gave positive findings to 53 projects with aggregate budgets of 154.7 billion rubles of which 77.6 billion had been requested from the corporation. These applications will be brought to the Executive Board and Supervisory Council in the first and second quarters and 2010. If approved for investment, their implementation will begin in 2010.

The Supervisory Council of the corporation approved 54 projects during 2009. These projects had aggregate budgets of 181.6 billion rubles, including cofinancing requests of 86.6 billion rubles (48 percent of aggregate budgets) from RUSNANO.

The cumulative number of projects approved by the Supervisory Council of the corporation as of Decem-ber 31, 2009, was 61. Their budgets total 192.3 billion rubles, including 92.4 billion rubles (48 percent of the aggregate budgets) to be cofinanced by RUSNANO.

In keeping with indicators of the effectiveness of the corporation’s work, set forth in the Business Strategy of the Russian Corporation of Nanotechnologies to 2020, sales of nanoindustry products by project companies established with the participation of the corporation must reach 300 billion rubles by 2015. Earnings of the 61 projects approved in 2008 and 2009 are forecasted at 130 million rubles in 2015.

Figure 4 illustrates the trends in project approvals by the Supervisory Council of the corporation during 2008 and 2009, reflecting a steady growth in their numbers.

Figure 4. Trends in project approvals by the Supervisory Council (number of projects).

1st qTR 2009

2nd qTR 2009

3rd qTR 2009

4th qTR 2009

2008

25

20

6

3

7

ENERGy EFFICIENCy AND ENERGy SAVINGS 15%

MEDICAL TECHNOLOGy 13%

INFORMATION TECHNOLOGy 8%

AEROSPACE TECHNOLOGy 2%

OTHER (OUTSIDE) 62%


7

The Supervisory Council’s portfolio of approved projects includes a notable portion of projects oriented toward priority areas for modernization that President of the Russian Federation Dmitry Medvedev has proclaimed for the Russian economy. Among them are energy efficiency and energy saving, medical technology, information technology, and aerospace technology. Data appear in fig. 5.

RUSNANO initiated financing for 17 projects in 2008–2009. At the end of the reporting period, the corpora-tion had invested 32.2 billion rubles in these projects. That surpasses the 29 billion rubles originally scheduled for investment in the Business Strategy of the Russian Corporation of Nanotechnologies to 2020. Thus in 2009 the corporation eliminated the backlog in project financing with which it closed 2008.

Brief descriptions of projects approved by the Supervi-sory Council of the corporation appear in appendix A.

2.2. Review of Requests Not Conforming to Requirements of the Corporation

In 2008–2009 the Executive Board of the corporation rejected 643 requests for financing with aggregate bud-gets of 399.7 billion rubles and whose sum requested

REASON FOR DENIAL NUMBER

AGGREGATE BUDGETS (IN BILLIONS OF

RUBLES)

REqUESTED FROM THE CORPORATION (IN

BILLIONS OF RUBLES)

Research and design work without commercialization prospects

220 85.8 73.1

Inconsistency of the documents with the corporation’s requirements

246 180.0 138,0

Negative findings from the Science and Technology Board

2 3,0 1.5

Negative findings as a result of the investment evaluation

2 0.5 0.3

Negative findings as a result of science and technology expert evaluation

119 109.0 72.4

Independent removal of the application by the applicant

54 21.4 11.7

TOTAL: 643 399.7 297.0

from the corporation was 297 billion rubles. The main reasons for these denials are presented in table 2.

In 2009 alone, 467 applications for cofinancing were declined, 2.7 times the number rejected in 2008. Among the declined projects, the number of rejections due to premature research and design stage without realis-tic plans for commercialization fell by half. At the same time, the number of denials due to inconsistency with the requirements of the corporation grew markedly. This type of denial is usually due to an applicant’s poorly elaborated submission. Finally, most of the requests that were declined sought funding from RUSNANO at levels exceeding 50 percent of the equity of the proj-ect company the applicant proposed founding. That conflicts with norms in the federal law On the Rus-sian Corporation of Nanotechnologies, which estab-lished an outer limit to the corporation’s share in the equity of the project company—less than 50 percent. with the exception of rare, special circumstances, approved by the Supervisory Council, private investors must fund the remainder of the projects’ equity.

2.3. Manufacturing Projects

The corporation devotes the greatest attention to requests for creation of new production and expansion of existing production. As a rule, these applications are well substantiated and well presented.

RUSNANO received 528 requests for manufacturing projects with aggregate budgets of 1.136 trillion rubles and financing from the corporation of 617 billion rubles. It is important to note that the number of these projects as a percentage of the total requests is rising: in 2009 they made up 83 percent of requests for cofinancing. In comparison, in 2008 the share of manufacturing proj-ects to the entire number of registered requests was 38 percent. In 2009 high-technology sectors had the highest number of requests for financing among manufacturing projects: chemicals (74), medicine (67), mechanical engineering (63), energy (48), electronics (45). Their distribution and others are presented in fig. 6.

Analysis of the structure of the portfolio of manufac-turing projects that the Supervisory Council approved shows them concentrated in nanomaterials, nanoelec-tronics, and nanotechnological applications in medi-cine. Their distribution is presented in fig. 7.

Table 2. Requests for financing declined by the Executive Board (projects declined as of December 31, 2009).


8

2.4. Infrastructure Projects

The corporation funds infrastructure projects in order to support the country’s nascent nanoindustry with essential scientific, innovation, financial, and manufac-turing prerequisites. Its primary goals in infrastructure building are to create conditions conducive to the gen-eration of new projects, to encourage the development of small, innovative companies, and to support the work of companies in the nanotechnology sphere.

Specialists within the corporation, bent on forming innovation infrastructure, developed a concept for a network of RUSNANO nanotechnology centers to im-prove the effectiveness of commercialization technol-ogy in the nanoindustry. The model was subsequently adopted by the Supervisory Council of the corporation.

Nanotechnology centers will be complexes outfitted with experimental, diagnostic, metrologic, scientific-engineering, and production equipment—all specifically designed for the industry. Each center will have a managing group of scientific workers, technicians, engineers, innovation managers, and marketing specialists.

As functioning units, the nanotechnology centers will resolve problems that have arisen because infrastruc-ture, particularly technical equipment, is underdevel-oped and because consultation services, particularly in marketing and management for innovative startups, are unsophisticated. Work in RUNSNANO nanotechnology centers will focus on the early stages of technology transfer, the conduct of design-experimental and pilot-engineering work, development of working documenta-tion and technical conditions, refinement in production technologies, turnout of pilot runs of products, and development of other links in the manufacturing and sales chain. Their work will culminate in the creation of innovative companies and the introduction of new techno-logies through the sale of patents and licenses. The process design for such centers is shown in fig. 8.

RUSNANO plans to establish as many as 19 centers. Their selection will be made through an open tender. Proposed projects will undergo analysis through expert reviews in science and technology and investment evaluations in order to identify all risks in the projects. The first competition for selection of projects was announced in mid-December 2009. Its results are expected in the first quarter of 2010.

Figure 6. Distribution of requests for financing of manufacturing projects by sector, 2009.

Figure 7. Structure and forecasted income for the portfolio of manufacturing projects.

NANOMATERIALS

NANOPHOTONICS

NANOMEDICINE

TECHNOLOGy FOR PRODUCTION OF

NANOMATERIALS

NANOELECTRONICS

OTHER AREAS

Forecasted income in 2015

(in billions of rubles)

Number of projects

11326

499

258

17

1

42

9

8

MECHANICAL ENGINEERING 12%

CHEMICAL INDUSTRy 14%

MEDICINE 13%

ENERGy 9%

ELECTRONICS 8%

CONSTRUCTION 5%

AGRICULTURE 1%

OTHER 37%

LIGHT MANUFACTURING 1%


9

WORk DESIgN DOCuMENTATIONTECHNOLOgY

Figure 8. Model for commercialization of technology.

DESIGN-ExPERIMENTAL

wORk

PIlOT-ENGINEERING

wORkSCIENTIFIC-RESEARCH

INSTITUTES (RESEARCH)

DESIGN-ExPERIMENTAL

wORk

PIlOT-ENGINEERING

wORk

PILOT PRODUCTION

PILOT PRODUCTION

INCUBATOR TECHNOPARkSPECIAL

ECONOMIC ZONE

SMAll-BATCh PRODUCTION

lARGE-SCAlE PRODUCTION

Commercialization through sale of technology

SCENARIO 2

Commercialization by establishing a new business

SCENARIO 1

In 2009 the Supervisory Council of RUSNANO approved three infrastructure projects. The first of these, infra-structure development for a storehouse of ultrapure chemical and biochemical reagents, is designed to ensure timely supply of reagents essential to Russia’s scientific-research institutes and producers working in high-technology sectors. The second project will build infrastructure for expanding mass production and for commercialization of promising product lines from company SemiTEq. Its technical equipment for molecular beam epitaxy and the planar process are criti-cal elements for development and production of base materials for many high-tech sectors of the economy,

for example, microelectronics, optoelectronics, solar energy, and telecommunications. The third infrastruc-ture project will set up a technical center for production of electronic nanomaterials and 3D electronic devices and offering services for 3D electronic device develop-ment. By using state-of-the-art technology, the 3D assembly will reduce costs of manufacturing goods and lessen dependency on imports for producers of electronics.

Nanotechnology center


10

2.5. Educational Programs

The corporation focuses its educational programs on developing workforce capacity for the nanoindustry through professional training and retraining programs, foremost, for employees of project companies to which RUSNANO has made a commitment as coinvestor.

In August 2009 the Supervisory Council approved a model for educational activities of the corporation. One of its basic principles is to select educational pro-grams for its project companies through open competi-tion. The commission that was founded to make the selections draws its members from heads of divisions in the Ministry of Education and Science of the Russian Federation, the Federal Agency for Education, the Russian Academy of Sciences, kurchatov Institute, RUSNANO, and from independent experts. The algo-rithm for conducting competitions relies heavily on in-volving nanoindustry employers in developing technical specifications and then in the realizing and/or monitor-ing the program and evaluating its effectiveness.

Educational programs, too, are integral to the corpora-tion’s strategy to 2020. In accordance with the model that was adopted for them in 2008, by 2015 there were to have been 96 programs developed and approved upon request from project companies. By yearend 2009 it was clear that project companies were more active than anticipated in this area. As can be seen in table 3, the original plan has been corrected to increase the number of programs.

In 2009 RUSNANO began cofinancing the educational project that had been approved in 2008: an internation-al and interdisciplinary program offered jointly by the Moscow Institute of Steel and Alloys and the Moscow Engineering Physics Institute and leading to a master’s degree in nanodiagnostics, metrology, standardization, and product certification in nanotechnology and the nanoindustry. The first specialists in critical areas of the nanoindustry will graduate from the program in 2010.

During the reporting period, RUSNANO joined others in beginning development and codification of profession-al standards for the nanoindustry. The National Agency for Qualifications’ Development under the Russian Union of Industrialists and Entrepreneurs, kurchatov Institute, and around 60 businesses, universities, and scientific-research institutes that are engaged in pilot production are participating in this work. Professional standards will help higher educational institutions take into account the requests of employers when planning their advanced training curricula.

In 2009 the corporation began creating an electronic registry of Russian and foreign higher education insti-tutes and programs in nanotechnology and innovation management. The registry’s primary purposes are to provide businesses in the nanoindustry with informa-tion when organizing employee training and as a source of recruitment for personnel. The registry is expected to be approved and begin functioning in 2010.

Table 3. Distribution of newly prepared educational programs by year.

2015

2014

2013

2012

2011

2010

2009 Implemented

as planned

2008 implemented

120

106

92

78

57

36

11

1


11

yet another direction the corporation will pursue is to study and, where appropriate, use foreign educational experience in training programs for project companies. It will examine training abroad—beginning with intern-ships for university instructors in foreign institutions and invitations to leading foreign specialists (including Russian expatriates) and ending with establishing joint programs with the best universities in the world and/or acquiring programs and adapting them for Rus-sian higher leaning institutions.

2.6. Joint Venture Funds

In 2009 the corporation worked out a concept and regulations for RUSNANO’s participation in venture funds. The Supervisory Council approved this program and gave its consent to the creation of five venture in-vestment funds whose budgets total 45.5 billion rubles.

The main goals of the funds have been set as follows: develop new nanotechnology and innovative compa-nies in Russia; shape a culture of innovation entrepre-neurship; enhance links between science, education, and innovative business; commercialize technology. The new funds must help the country assimilate the best practices of international investment and improve mechanisms for collective investment and the structur-ing of innovative business in the Russian Federation.

The international funds, including the fund with venture market global leader Draper Fisher Jurvetson, the Russian-Kazakh fund, and the RUSNANO international fund (Rusnano Capital) will provide access to foreign innovative advances through a system of international partnership and open pathways to professional foreign experience in managing and perfecting infrastructure for innovation.

The sector fund to introduce nanotechnology to the metallurgy industry, approved in 2009, will encourage development of new products and technology in the metallurgy sector, ensure that Russia holds a strong position in pioneering new, effective technology in the sector, and further the modernization or replacement of equipment and facilities in the metallurgy industry.

The fund for small-budget projects in nanotechnology will support growth and development of small inno-vative companies. These companies will be concen-trated mainly in the Siberian Federal Okrug. The fund

will accept applications for financing from small and medium-sized innovative companies that are planning or implementing projects based at scientific research institutes and other subdivisions of the Russian Acad-emy of Sciences as well as technoparks, science towns, technology innovation zones, and higher educational institutions and their branches located within the Sibe-rian Federal Okrug.

RUSNANO expects that the 20.9 billion rubles it has placed in these funds will generate earnings of 145 bil-lion to 155 billion rubles for the corporation by the time it exits from them.


12

Modified asphalt-concrete road paving from recovered rubber automobile tires reprocessed using a nanotechnology application

Innovative heat insulating materials of reclaimed crushed glass reprocessed using a nanotechnology application

Prepregs—nano-enabled composite materials for the air and space industry

Nano-enabled high-barrier polymer film for food packaging


13

Management of Project Companies

3.1. Corporate Management

In accordance with the federal law On the Russian Cor-poration of Nanotechnologies, sharing in the cofinanc-ing of a project, the corporation may not be a majority shareholder or participant in a project company and, as follows, does not have dominant influence over its operations. Nevertheless, the corporation is entrusted to ensure control over the effective expenditure of resources invested in the project and the adherence to terms and conditions for project realization.

The structure of corporate management by RUSNANO is based on the following principles:

Transparent terms and conditions for project participation by the corporation, coinvestors, and applicant

Consistent requirements and policies in its relations with all project companies that take into account the specificities of the business and interests of the applicant and coinvestors

Disposition of corporate management issues, reflected, among other things, in agreements with shareholders/participants concluded as part of the project’s realization

Moderate exercise of control over operations of the project company, guaranteeing use of investment resources of the corporation as earmarked and achievement of key objectives of the project while allowing project management sufficient freedom in operations and project realization

When establishing project companies cofinanced by the corporation, various organizational-legal forms are permitted. The companies may be Russian legal entities

or legal entities of foreign jurisdiction. The form chosen in each situation is determined, particularly, by the principle of providing maximum flexibility in realization of the project. Today most of the companies are created as Russian entities, closed joint stock companies or companies with limited liability.

when the corporation participates in investment funds, their form of jurisdiction is chosen, among other matters, with consideration for the interests of key investors, the attraction of new investors, the eventual exit from the fund by the corporation, and the transfer of useful technology to Russia.

In addition, certain nanotechnology projects and projects stimulating nanotechnology development are realized in the form of non-commercial organizations. The Fund for the Development of the Polytechnical Museum in Moscow and Forum RUSNANO, a fund for the promotion of advances in nanotechnology, are examples.

The corporation employs corporate management mechanisms to protect its interests when realizing projects:

Representatives of the corporation participate in general meetings of shareholders/participants in subsidiary and dependent organizations;

Representatives of the corporation participate in boards of directors of subsidiary and dependent organizations;

Representatives of the corporation participate in auditing commissions of subsidiary and dependent organizations;

Representatives of the corporation participate in forming management bodies of subsidiary and dependent organizations and control their work;

Representatives of the corporation participate in the control of financial and business activities of subsidiary and dependent organizations, including transactions with assets of the subsidiary and dependent organization.

To protect the interests of the corporation when par-ticipating in investment funds, there are provisions for representatives of RUSNANO to take seats on boards of directors of management companies and in invest-ment and other special committees of the funds. when it does so, under the regulations of the corporation, no payment to the corporation or its representative is sought or accepted.


14

Representatives of the corporation to management bodies of project companies and investment funds work under conditions and in a form that permit them to block approval of measures that conflict with the interests of RUSNANO.

By forming management bodies and control of project companies at the stage it enters the project, RUSNANO aims to secure the participation of all shareholders in setting strategies for the project company’s develop-ment and in deciding on professional management for its ongoing activities. These matters are agreed upon with project participants at the pre-investment stage. In corporate documents, the roles and functions of executive management (general director, manage-ment committee, and managing company) are plainly delineated as are the roles and functions of the repre-sentative body (the board of directors).

In developing corporate management for the project company, distinctive features of the project are taken into account to ensure that management of the project company is as effective as possible. While the board of directors retains within its competency the powers (and responsibility) for monitoring and controlling the expenditure of resources invested by project partici-pants, certain areas of responsibility are delegated to project company management along with authority for independent decision making.

The corporation protects its interests at all stages of project realization through the following mechanisms:

Contracts with shareholders/participants in the proj-ect company that regulate all essential issues regard-ing establishment, functioning, and management of the project companies

Guarantees that all key decisions of management bodies of the project company are made only with the participation of representatives of the corporation

Exercise, under extraordinary circumstances, of additional rights as a participant in the project company

Because a significant portion of the corporation’s projects are realized through establishment of new busi-nesses, in initial stages, RUSNANO provides these new businesses with expert assistance, including support in corporate management.

The corporation gives careful thought and attention to preventing conflicts and disputes from arising among participants in the project company. One example is the inclusion in documents for the company’s found-ing of extrajudicial procedures for resolving differences.

To ensure the interests of all parties, the board of direc-tors of the project company comprises representatives of the applicant, coinvestors, and RUSNANO. The corpo-ration reserves the right to influence key decisions on questions that lie within the competency of the board of directions: approval of the budget of the company, special-purpose spending of resources invested in the company, allocation of the assets that are most impor-tant to realizing the project.

The corporation strives to follow the best Russian and international practices in company activities. It will draw on independent experts for quality realization of proj-ects and attract independent directors to the boards of directors of project companies.


15

3.2. Treasury (Disbursement) Control over Spending Funds Invested in Project Companies

Through legislation of the federal government of the Russian Federation, the Russian Corporation of Nano-technologies is charged with monitoring the effective-ness of the use of financial resources of project compa-nies. Expenditure of monies for any purpose other than intended is cause for discontinuance of RUSNANO’s financing.

In 2009 the corporation developed a normative base and implemented a system of treasury control over the spending of earmarked resources in the projects. Each project company must adopt policies and procedures regulating the expenditure of funds that the corpora-tion and others have designated for financing the project. In compliance with RUSNANO’s requirements, project companies place the invested resources in bank accounts with special servicing regimes, includ-ing payments from the accounts only in accordance with budgets that have been adopted by its managing bodies. This mechanism must be part of the agreement between the company and its bank for bank account maintenance.

Mandatory use of disbursement control for the expenditure of invested resources is fixed in founding documents of the project company by limiting certain areas of decision making to to executive and represen-tative bodies:

Establishment and operation of a system that ensures purposeful use of monetary resources of the project company

Selection of the servicing bank and concluding agreements with that bank

Approval of the budget of the project company

The system of disbursement control that RUSNANO has developed assigns monitoring and restricting the project company’s expenditures to its bank. It executes payment in conformance with the policy described above.

The corporations and the other investors in the project company choose the bank from a list of bank-partners that have expressed willingness and interest in providing disbursement control and that meet the require-ments of the corporation. To be included in this list, a bank must have a credit rating. In providing credit, the sum the bank extends to legal entities, sole proprietor-ships, and individuals must comprise more than 50 per-cent of its total credit portfolio. There were 39 banks on the list of bank-partners of the corporation in 2009. The list is updated constantly as more and more banks apply to the corporation and pass through its process of approval.


16

Role of the Corporation in Creating an Environment for Innovation

Preparing a legal base that stimulates the development of the latest technology and promotes its introduction is an important block in building an economy based on innovation in Russia. Throughout 2009 specialists at the corporation worked to analyze Russia’s current laws, elaborate improvements to existing normative acts, and design draft documents for new legislations.

One of the most effective measures for stimulating demand for innovative products is to use government purchases. RUSNANO and interested ministries and government agencies are collaborating in work that the Ministry of Economic Development of the Russian Federation is spearheading to perfect laws on government purchases. The corporation prepared a number of proposals for changes in federal law № 94-FZ On Placement of Orders to Supply Goods, Carry Out works, and Render Services to Meet State and Municipal Needs dated July 21, 2005. Its proposals included conducting multi-step tenders using additional evaluation criteria when procuring innovative products. No less important is work to improve laws for technical regulation. On December 30, 2009, one of the documents that the corporation had worked on, federal law № 385-FZ On Changes to the Federal law on Technical Regulation, became effective. The new law will normative acts of the Customs Union and European Union for technical regulation under certain circumstances. This will ensure that Russian norms satisfy contemporary levels of technical development, high quality, and product safety for consumers.

Adoption of federal law № 261-FZ On Energy Conservation and Increased Energy Efficiency and On Changes to Individual Legal Acts of the Russian Federation dated November 23, 2009, was another important step in stimulating development and creating demand for innovative products. The corporation cooperated in its preparation.

This work will continue. In 2010 the corporation plans to propose a number of sublegislative acts. RUSNANO’s specialists have been invited to join the working group on energy efficiency of the Commission under the President of the Russian Federation on the Modernization and Technological Development of the Economy of Russia.

During the reporting period, RUSNANO prepared draft federal laws to make current laws on customs, corporate rights, and marketable securities consistent as well as preparing packets of normative legal acts for developing those documents. The proposals for changes to the Customs Code of the Russian Federation and the federal laws On Export Control and On Currency Regulation and Currency Control would streamline customs procedures, export and currency control, and other administrative limitations for exports with a high-degree of processing and for samples or models temporarily brought in or out of the country for studying and testing.

Measures that encourage investors to increase the flow of private capital into high-risk projects are equally important to building an economy with roots in innovation. Pursuing that goal, specialists at the corporation prepared a draft federal law On Investment Partnership. The document uses the best practices with innovation worldwide for organizational-legal forms of collective investment and creation of investment funds, which are new areas of corporate legislation in Russia. The adoption of this proposal will create a legal base for funds for collective investment oriented toward different stages of company development (seed funds, venture funds, and direct investment). In the future, these funds will encourage a flow of innovative projects that will already be ensured financial resources at each stage of their development.

RUSNANO prepared a draft of the federal law On Intro-ducing Changes and Additions in the federal law On Mar- ketable Securities. The new law would moderate reporting requirements for closed mutual investment funds, especially high-risk venture investments, to minimize expenses associated with the venture fund’s operations in that form. It would broaden the rights of managing companies, including the right to acquire mutual funds.


17

In 2009 the corporation began to prepare drafts federal laws to improve legislation of innovative activities, particularly regulations on intellectual property and regulatory and self-regulatory activities of patent attorneys, After analyzing the current normative base on intellectual property, the corporation developed plans for changes in normative-legal acts. One proposal would make changes to the fourth part of the Civil Code of the Russian Federation to improve regulation of intellectual property. By the end of 2010 the corporation expects to complete draft normative documents to improve the effectiveness of systems that protect rights to results of intellectual activity.

Turning attention to tax incentives for innovative undertakings, specialists at the corporation analyzed international experience and Russia’s practice of tax stimulus for scientific and research work. In 2009 the corporation developed a concept paper for the changes to the Tax Code of the Russian Federation required to give the tax system a role in creating and stimulating demand for high-technology and innovative products, introducing modernization programs, and encouraging investment in high-technology manufacturing. It simplifies tax administration procedures to provide incentives for innovation and brings the tax system in line with the challenges innovative businesses face today. The concept paper also proposes special provisions on tax liability for transactions with intellectual property and simplifications for tax procedures on exports of high-technology goods. In 2010 RUSNANO will prepare the draft federal law on introducing changes to the Tax Code of the Russian Federation addressing these issues.

The corporation has worked with interested ministries and state agencies throughout the year to help lay the groundwork for building an economy based on innovation that will have the strengths of reliable stimuli for the sector and legal protection for companies working in it.


18

Role of the Corporation in Stimulating Demand

Developing sector and regional approaches to fuel demand for nanoindustry products is an important part of the corporation’s mandate. In 2009 RUSNANO devel-oped and adopted a concept paper for activities that the corporation could undertake to stimulate demand. It describes how to form demand for innovation, includ-ing demand for nanotechnology products, from internal and external markets. During work on the document, the corporation identified priority economic sectors: construction, information technology, transportation (including pipeline transport), metallurgy, medicine, and pharmaceuticals. The choices correlate to areas that the President of the Russian Federation has named as priori-ties for the country’s modernization as well as coincid-ing with the positive experience the corporation has had with projects in these fields.

RUSNANO has already begun stimulating demand for innovation, and demand for nanotechnology products, from the country’s largest enterprises. Foremost, it is building sector-specific communications among these enterprises, their suppliers and consumers, and produc-ers in the nanoindustry.

In December 2009 RUSNANO and Russian Railways, RZD, signed a general agreement on cooperation. The agreement sets forth a program to foster demand for innovative products. Seven groups—each with rep-resentation from RZD, their suppliers, RUSNANO, and innovative companies—are working in profile areas that at this moment have elicited more than 40 projects with total potential sale/purchase value of more than three billion rubles per year.

RUSNANO and Mechel, a leader in the mining and metals industry, have also established a joint working group. The group is evaluating investment projects, one of which would produce long-length nanostructured railroad rails of special rustproof steel. Production tech-nology in the project would make use of nickel from low-quality and dust ore minerals.

An agreement between the corporation and Olymstroy is near signing. This collaboration would encourage demand for nanoindustry goods in the construction industry and would include purchases of innovative products for the 2014 Olympic Games in Sochi.

Stimulating demand for nanotechnology products involves cooperation with regional governmental bodies as well. In 2009 RUSNANO and representatives of Perm krai’s administration devised a program to stimulate demand in the region for nanoproducts. This compre-hensive program envisions changing the normative-legal base for the region’s innovative businesses, encouraging purchases from the regional administra-tion for innovative products manufactured in Perm and other subjects of the Russian Federation, and raising energy efficiency at businesses in the region. In another regional effort, analyses of the normative-legal base in the Chuvash Republic and the Tomsk, Novosibirsk, and Voronezh oblasts concluded with proposals to improve those documents to promote demand for nanoindustry goods.

Cooperation with federal executive bodies was no less central during 2009. RUSNANO signed cooperative agreements with the Ministry of Industry and Trade of the Russian Federation and the Ministry of Communi-cations and Mass Media of the Russian Federation. The agreements made way for the corporation and the ministries to develop a plan of action for 2010, featuring activities to fuel demand for nanotechnology products: collaborative work to identify investment projects in the nanoindustry, elaboration of cofinancing mechanisms for investment projects, and joint proposals for changes in the normative-legal bases in sectors that related to these two ministries.

The corporation studied the world market and interna-tional trade in nanotechnology goods as an early step in promoting Russian nanoindustry products abroad. It determined the products and country markets that hold the most promise. Then it developed a concept paper on promoting exports of Russian nanotechnology products with a national initiative that can be under-taken to further foreign nanoindustry sales.


19

Public Affairs

Through popularization of nanotechnology and the nanoindustry, the corporation intends to stimulate scientific research and development, raise the business community’s awareness of the vast opportunities that nanoindustry presents, and form a trusting attitude toward the nanoindustry and nanotechnology products. Success, our studies show, is dependent on informative work with professionals and with the public.

The Supervisory Council of the Russian Corporation of Nanotechnologies adopted a proposal for public outreach, the Concept for Public Communications for Popularization of Nanotechnology and the Nanoindus-try. By speaking to the public directly and by collaborat-ing with ministries and governmental agencies and professional and public organizations, we intend to build communications infrastructure that will help popularize nanotechnology and the nanoindustry and convey accurate information on scientific research and nano-technology developments and their realization in production facilities across the country.

RUSNANO’s web sites are an important source of infor-mation about the corporation and the nanotechnology sphere. The corporate site, http://www.rusnano.com, went through significant reformatting and updating in 2009. The site for the Nanotechnology International Forum, http://www.rusnanoforum.com, contains video recordings and presentations from previous forums as well as the program for the next one. The site addressed to the public, http://popular.rusnano.com, (in Russian only) uses graphics and straightforward language to explain nanotechnology advances underway today and the leaps we may expect in the future. It addresses topics of general interest—health, food, the home, and sports, for example.

RUSNANO began compiling a Russian-language ency-clopedia of nanotechnology terminology in 2009. The editorial board includes leading specialists from many areas of science and corporation-accredited ex-perts. Nearly forty authors have been engaged to write

articles for the publication and more than 500 terms have been prepared. when the encyclopedia went live at http://thesaurus.rusnano.com on December 15, 2009, 413 articles had already been written. The ency-clopedia is available to all and discussion is welcome.

RUSNANO uses the Internet for the annual Internet academic nanotechnology competition as well. The project, a joint one with Moscow State University, attracts talented young people to the nanosciences and may become a first step to their career in nanoindustry.

Establishment of the Fund for Development of the Polytechnical Museum in Moscow is another avenue for popularizing nanotechnology and the nanoindustry. RUSNANO expects to attract large businesses and innovative companies to help carry out the museum project. Plans include modernizing the existing collec-tion, funding new departments, and adding expositions of the latest achievements, foremost, in nanotechnol-ogy. The rich collection and historic building themselves need updated exhibition and archive technology.

RUSNANO organized and conducted popular science lectures in several areas of nanotechnology for students and teachers at high schools and liberal arts colleges.

The corporation publishes a monthly digest, Nanotech-nology in Russia and the World (in Russian only). To assist applicants in preparing requests to RUSNANO for cofinancing to commercialize nanotechnology prod-ucts, the corporation has prepared a brochure—7 Steps to Establishing a Business. The brochure is available in Russian and in English and may be downloaded from RUSNANO web site http://www.rusnano.com/Docu-ment.aspx/Show/19895.

The press service of the corporation holds regular brief-ings and issues regular releases for the mass media and specialized press. The service also presents the projects whose funding RUSNANO’s Supervisory Council has approved.

http://www.rusnano.com

http://www.rusnanoforum.com

http://popular.rusnano.com

http://thesaurus.rusnano.com




20

light-emitting diodes manufactured with a unique nitride gallium based

heterostructure technology and lighting based on these LEDs

Arsenide gallium wafers, chips, and optical components made from

vertically emitting lasers for ultrafast data transfer networks

Flex-resistant and photonocrystal optic fibers and fibers with hydrocarbon nanocoating

Miniature, highly effective thermoelectric cooling modules


21

International Activities and the Nanotechnology International Forum

The corporation carries out international work in fur-therance of its strategic goal of promoting Russia into one of the leading positions in the world’s nanotechnol-ogy industry. During 2009 delegations from RUSNANO visited the United States, Germany, Sweden, Finland, Japan, Israel, and Canada. Delegates, including senior managers of the corporation, met with representatives of governmental agencies and business circles and scientific groups working in nanotechnology. Strength-ening ties in other countries contributed to agreements and cooperative work with foreign governments and businesses last year:

Intergovernmental agreement between Russian and Israel, initiated by RUSNANO, on industrial research and development. At a meeting of the countries’ lead-ers, each side acknowledged that the agreement was essential to their economic cooperation. There were excellent prospects at yearend for signing the agree-ment in the first quarter of 2010.

Memorandum of understanding with Alcoa (United States) that led to a plan and schedule for joint work in the coming months.

Memorandum of cooperation with Russian business incubator FUTURUS (Singapore) for the latter to assist RUSNANO in establishing contact with Asian nano-forums and with nanoindustry organizations in Sin-gapore that are working in Southeast Asia. FUTURUS will assist in a targeted search for partners with whom the corporation can work on appropriate investment projects. As a result of this collaboration, in October 2009 RUSNANO became a permanent observer to the annual Asia Nano Forum’s Summit. The corporation also received an official proposal from the govern-ment of Singapore for the establishment of a joint investment fund.

Memorandums with specialized organizations in Chi- na and Korea to work jointly on standard-setting and

product certification based on earlier agreements of cooperation with the ministries of Science and Technology of the Chinese People’s Republic and the Republic of korea. The agreements provide for meet-ings between experts, consultations, seminars, confer-ences, and negotiations for cooperative projects.

Memorandum of understanding with the European Bank for Reconstruction and Development under which financing from the bank for nanotechnology projects on the territory of the Russian Federation will be considered. The EBRD has spoken of intentions to earmark up to one billion euros for that purpose.

Elaboration of a program for cooperation with the Organization for Economic Cooperation and Development.

A 2009 agreement of cooperation with the Ministry of Employment and the Economy of Finland was fulfilled and the corporation and the ministry have designed a new, broader program plan for 2010.

Agreement on development of an investment pro-gram with the Finnish state investment fund Tekes, the Finnish Funding Agency for Technology and Innovation.

The twenty-first century’s world is an ever smaller place with an ever more mobile population. Not surprisingly, many talented Russian have made homes in foreign countries. The corporation believes that it is vital to draw them into Russian nanotechnology projects as partners, investors, experts, consultants, and key managers for project groups. As part of that work, RUSNANO’s Executive Board endorsed a concept paper for cooperation with fellow Russians living abroad and working in nanotechnological science and/or business.

Numerous meetings in 2009 between RUSNANO executives and representatives of the Russian diaspo-ra—scientists and businessmen—in the United States, Israel, France, Finland, Switzerland, and other countries elucidated not only the main difficulties our country-men face in taking part in the corporation’s projects and conducting business in Russia but also made clear our mutual interest in such collaboration. In August 2009 RUSNANO signed an agreement for cooperation and partnership with the American Business Association of Russian Professionals. The agreement, already in operation, aims to increase the number of foreign applicants for cofinancing and attract foreign inves-tors to RUSNANO projects and prepare Russian project groups to work with international venture funds.


22

RUSNANO took part in organizing the international conference SVOD-2009, Silicon Valley Open Doors Investment Conference, where, for the first time a section on nanotechnology was opened. More than 40 nanotechnology projects were offered in an interna-tional competition of projects for realization in Russia. The Russian-American jury chose 10 finalists and those projects were delivered to RUSNANO as applications for cofinancing. Analogous international competitions with broader geographic reach will be held in 2010.

As of the end of 2009 of the 107 foreign requests (including CIS countries) for cofinancing that had been submitted to the corporation, 65 had come from groups in which managers or key participants were Russian. Of the 84 projects submitted to the corporation from applicants in 12 countries (excluding CIS countries), 42 had been prepared on the initiative and with the participation of Russians working abroad.

The second Nanotechnology International Forum was one of the highlight events of 2009. The forum was conducted in compliance with directive № 1058-r of the Government of the Russian Federation dated July 30, 2009. President of the Russian Federation Dmitry Medvedev gave the opening address.

The program of the forum consisted of a business meeting, professional science and technology sessions, poster presentations, reports by participants in the international competition of young scientists working in nanotechnology, and exhibitions of innovative prod-ucts. More than 10,000 people from 75 regions of the Russian Federation and 38 foreign countries attended the October event, which took place in Moscow.

Discussions on institutions for an innovation economy, promising industrial applications of nanotechnology, international manufacturing experience, and other timely themes attracted businesspeople, profession-als, government officials, and the press to the business portion of the forum. Representatives of executive and legislative branches of the government of the Russian Federation and heads of regions made presentations on local programs for nanotechnology growth.

The science and technology portion of the program comprised 17 sections in which more than 200 repre-sentatives of leading scientific research institutes from different countries spoke.

The Nanotechnology International Forum is now home to the Nanotechnology International Prize, RUSNANO-PRIZE. A gala ceremony was held to award the laureates of RUSNANO-2009 their prizes in nanoelectronics, the category that had been chosen for 2009, and the nano-industry awards to distinguished Russian youth.

The forum’s program closed with results of the second International Competition of young Researchers. Five hundred and five young Russian professionals residing in 58 cities in the Russian Federation and 13 young for-eign professionals from nine countries presented their work. Deputy Prime Minister of Russia Sergey Ivanov presented awards to fifty-one young researches who had become laureates in the competition.

Latest advances in nanotechnology and equipment for the nanoindustry were demonstrated during the exhibi-tion. Nearly 400 companies from 33 regions of Russia and 15 foreign countries showed their achievements and explained their work. The exhibits covered 2,993 square meters of exhibition space.

FOREIGN COUNTRIES NUMBER OF REqUESTSREqUESTS FROM

RUSSIAN ExPATRIATES

Great Britain 2 1

Germany 7 2

Hong kong (PRC) 2 1

Israel 18 16

Italy 3 2

Canada 3 3

Cypress 1 1

Netherlands 1 0

United States 39 14

Taiwan 1 1

Finland 5 1

Switzerland 2 0

TOTAL 84 42

Table 4. Distribution of foreign requests for financing through December 31, 2009, by country and with requests from Russian expatriates.


23

During the forum, RUSNANO signed several important agreements:

Agreement of cooperation with the government of Perm krai

Agreement with Sberbank under which the bank, Russia’s largest, will consider opening a credit line of 45 billion rubles for the corporation and its project companies

Memorandum of cooperation with BANk URALSIB under which the latter will become a coinvestors in several nanotechnology projects

General agreement on strategic partnership with LUkoil

Agreement on long-term cooperation with the Polytechnical Museum in Moscow

The third Nanotechnology International Forum will take place in Moscow on November 1–3, 2010.

Solar panels built using a micromorph silicon thin film technology

high-efficiency concentrator solar units based on nanoheterostructured phototransducers with Fresnel lenses and sun-tracking systems


24

Management Bodies of the Corporation

The chief executive officer of the corporation was appointed by decree № 1401of the President of the Russian Federation dated September 22, 2008.

Members of the Supervisory Council of the corporation were named by executive orders of the Government of the Russian Federation: № 1175-r dated September 7, 2007; № 1673-r dated November 26, 2007; № 230-r dated February 27, 2008; № 1649-r dated November 12, 2008. The first meeting of the Supervisory Council took place on September 25, 2007.

The Supervisory Council appoints members of the Executive Board. The Supervisory Council adopted regu-lations governing the activities of the Executive Board on December 5, 2007. The Executive Board has met weekly since December 2007.

In fulfilling obligations of the corporation for investment project financing, several documents guide the work of the Executive Board and the Supervisory Council, including:

Federal law № 139-FZ On the Russian Corporation of Nanotechnologies dated July 19, 2007 (as amend-ed by federal law № 58-FZ dated April 9, 2009)

Regulations on the Supervisory Council of the Russian Corporation of Nanotechnologies (approved by the Supervisory Council of the corporation on December 5, 2007

Regulations on the Executive Board of the Russian Corporation of Nanotechnologies approved by the Supervisory Council of the Russian Corporation of Nanotechnologies dated December 5, 2007

8.1. Supervisory Council of the Russian Corporation of Nanotechnologies

In accordance with federal law № 139-FZ On the Rus-sian Corporation of Nanotechnologies dated July 19, 2007, the Supervisory Council is the highest manage-ment body of the corporation. The council was estab-lished by executive order № 1175-r of the Government of the Russian Federation dated September 7, 2007.

During 2009 the Supervisory Council of RUSNANO held 11 meetings. The meetings followed the meeting plan for 2009, adopted by the council on December 18, 2008. Members of the Supervisory Council considered 90 is-sues that fall within its authority, as set forth in the federal law On the Russian Corporation of Nanotechnology.

Members of the Supervisory Council and their principal affiliations are listed in Appendix B.

8.2. Science and Technology Board of the Russian Corporation of Nanotechnologies

The Supervisory Council established the Science and Technology Board in February 2008, electing 19 mem-bers upon proposals from and preferential voting by the Supervisory Council.

The Supervisory Council elected Mikhail Alfimov, Director of the Photochemistry Center of the Russian Academy of Sciences, chairman of the Science and Technology Board by direct vote.

The Science and Technology Board carries out its work in accordance with federal law №139-FZ On the Russian Corporation of Nanotechnologies dated July 19, 2007, and Regulations on the Science and Technology Board of the Russian Corporation of Nanotechnologies dated December 25, 2007. During 2009 the Science and Tech-nology Board held 24 meetings. Members of the board reviewed scientific-technical descriptions and justifica-tions of 116 investment projects. The board adjudged 93 proposals consistent with global scientific-technical levels, scientifically well founded and technically realiz-able, and recommended them to the Executive Board and Supervisory Council for cofinancing with resources of the corporation.

Members of the Science and Technology Board and their principal affiliations are listed in Appendix B.


25

8.3. Committee for Investment Strategy of the Russian Corporation of Nanotechnologies

The Committee for Investment Strategy under the Supervisory Council of the Russian Corporation of Nanotechnologies was formed of 11 individuals in April 2008 upon proposals from and preferential vot-ing by members of the Supervisory Council.

The Supervisory Council elected Pavel Teplukhin, Man-aging Director at Troika Dialog Group, chairman of the Committee for Investment Strategy by direct vote.

The work of the Committee for Investment Strategy is regulated by Regulations on the Committee for Investment Strategy under the Supervisory Council of the Russian Corporation of Nanotechnologies.

The Committee for Investment Strategy prepares recommendations to the Supervisory Council on invest-ment projects and amounts to be cofinanced with re-sources of the corporation; cofinancing may not exceed one percent of the book value of the corporation, as cal- culated per Russian standard accounting practices at the end of the last reporting date. The Committee for Investment Strategy met seven times during 2009. Dur-ing its sessions, members considered eight investment projects. They made favorable recommendations to the Supervisory Council on financing seven projects with resources of the corporation. One investment project was returned for further development.

Members of the Committee for Investment Strategy and their principal affiliations are listed in Appendix B.

8.4. Executive Board of the Russian Corporation of Nanotechnologies

The first meeting of the Executive Board was held on December 17, 2007. On February 3, 2009, with resolu-tion № 14, the Supervisory Council appointed two new members to the Executive Board—Deputy Chief Executive Officer Andrey Svinarenko and Director for Innovative Development yuri Udaltsov.

The Executive Board carries out its work in accordance with federal law №139-FZ On the Russian Corporation of Nanotechnologies dated July 19, 2007, and Regula-tions on the Executive Board of the Russian Corpora-tion of Nanotechnologies approved by the Supervisory Council of the Russian Corporation of Nanotechnolo-gies, protocol № 2, dated December 5, 2007.

The Executive Board of RUSNANO met 51 times during 2009. Members of the board considered all material to be brought to the Supervisory Council, reports from managing directors on progress in preparing and real-izing investment projects, requests to deny applicants financing with resources of the corporation, and other matters within the Executive Board’s authority in ac-cordance with federal law №139-FZ On the Russian Corporation of Nanotechnologies.

Members of the Executive Board and their positions within the corporation are listed in Appendix B.

26

Planning, Budgeting, and Procurement Processes of the Russian Corporation of Nanotechnologies

9.1. Planning and Budgeting

RUSNANO devotes considerable effort to financial plan-ning, budgeting, and monitoring the progress of those plans. It does so to ensure:

Optimal distribution of financial resources for realizing the goals and objectives set forth in federal law № 139-FZ On the Russian Corporation of Nanotech-nologies dated July 19, 2007

Limitation on expenditures of monetary resources per area of activity of the corporation

Management of liquidity and the structure of short- and long-term financial obligations

Formation of earnings plans and attraction of financial resources

Analysis of financial indicators

The main document for financial planning and budget-ing within the corporation is the financial plan of income and expenses (budget), reflecting in monetary form the income and expenses for the year. The Supervisory Council approved the financial plan of income and expenses (budget) of the corporation for 2009 on April 7, 2009.

The instrument for realizing the financial plan of income and expenses (budget) of the corporation is the budget-ed statement of cash flows, a detailed, line item plan by income and expenses and changes in the balance sheet for each structural unit of the corporation by period of receipts and expenditures (quarter, month, week, day).

9.2. Procurement

Procurement in 2009 was carried out in accordance with the Temporary Provision on Organization of Pur-chases of Goods, work, and Services of the Russian Cor-poration of Nanotechnologies approved on January 9, 2008. where practicable, procurement was conducted through open competitive procedures. In comparison with 2008, the number of purchases in 2009 conducted through competitive procedures was 1.8 times greater.

During 2009 the Executive Board of the corporation directed the development and implementation of a new procurement system to optimize spending for purchases and organize more effective control over expended resources. The new electronic procurement system reflects the same key principles of work that the corporation uses in investment activities: openness, transparency, equal opportunity for all, and selection of winners through combined parameters of quality, terms of delivery, and price.

The new e-purchasing system features:

Standard business processes for procurement, most of which are reflected in RUSNANO order № 733 Rules Governing Purchasing Activities dated December 2009. It is available on the corporation’s Internet site (Russian language only).

IT-support for purchasing activities with electronic informational-analytical, and Internet trading: The system permits any type of trading in electronic form. RUSNANO choose the system through a tender and the choice was approved in RUSNANO order № 277 Internet-System B2B-RUSNANO dated July 2, 2009.

Organizational and management support for purchas-ing activities established and functioning through collegial authorities: RUSNANO order № 230 founded the Central Commission for Organization of Purchas-ing Activities. Special tender committees have been established to improve competency and operational efficiency. The committees work in these areas:

IT and IT equipment

Purchasing support for administration and housekeeping

Support for service activities of the corporation


27

Procurement procedures for selection of manage-ment companies to whom fiduciary management of resources and assets of investment and other funds will be conveyed

Procurement support for investment activities

Training programs have been organized for employees of the corporation who work in purchasing processes.

B2B-RUSNANO was presented to current and would-be vendors in late 2009 through a conference titled How to Become a Vendor. Attendees learned how the new system operates and how they can become its users.

The corporation’s work during 2009 to improve pur-chasing activities boosted the number of suppliers of goods, work, and services by 25 percent and increased by 12.4 percent the share of open tenders, raising the quality and reducing the price for goods, work, and services that RUSNANO purchased.


28

New types of human and bird influenza vaccine with self-assembled nanoparticles

based on of modified adenoviruses

A unique device for express diagnostics of blood clotting disorders that uses a special nanocoating which imitates the blood vessel walls

Track-etched membranes with nanosized pore diameters and instruments for

hi-tech cascade filtration of blood plasma—preventive treatment against

cardiovascular diseases

Nanonpore membranes and separating modules

for obtaining ultrapure desalinated water


29

Highlights from 2009

In 2009 the Russian Corporation of Nanotechnologies received 634 requests for project cofinancing. The projects have aggregate budgets of 1.355 trillion rubles of which 712.3 billion rubles rubles were requested from the corporation. A significant percentage of the requests were for new production or modernization of existing processes and fixed assets.

All requests that enter the corporation go through a multi-staged system of expert evaluation. In 2009, for various reasons, 467 projects (including some that had been received in 2008) were denied cofinancing.

The Supervisory Council of the corporation approved 54 projects during 2009, projects in solar energy, mechanical engineering, metalwork, nanoelectronics, medicine, and venture financing. The total budget for these projects is 181.6 billion rubles of which 86.6 billion rubles were requested from the corporation. Fifty-three projects that have passed all evaluation steps and the Science and Technology Board will be brought to the Supervisory Council in the first half of 2010.

In sum during 2008 – 2009, the Supervisory Council of the corporation approved 61 projects. Their bud-gets total 192.3 billion rubles and include 92.4 billion rubles that RUSNANO will cofinance. A considerable share of these projects is oriented toward the priority areas for modernizing the economy of the country that President of the Russian Federation Dmitry Medvedev has declared. These 61 projects are forecasted to earn revenue from sales in excess of 130 billion rubles annu-ally by 2015.

In 2008 and 2009 the corporation financed 17 approved projects, dispersing 32.2 billion rubles through the end of 2009. Four manufacturing projects earned their first revenues in 2007—176.5 million rubles.

In the area of infrastructure, the Supervisory Council of the corporation approved a project for a network of regional nanotechnology centers that will offer a complex of services, particularly in commercialization and marketing, to start-up nanoindustry companies. The corporation also worked on creating a program for workforce potential through preparation of staff and additional training for those already further in their careers.

An extremely important aspect of building an innova-tion economy in Russia is creating a legislative base that stimulates advances in state-of-the-art technol-ogy and promotes their implementation. During 2009 RUSNANO’s specialists analyzed existing laws, framed changes to normative acts, and drafted new docu-ments. The corporation is undertaking work to fuel de-mand for innovative, including nanotechnological, prod-ucts by establishing systematic communication among nanotechnology producers, the largest businesses in a market segment, and its vendor and consumers.


30

New composite materials—prepregsPROJECT PARTICIPANTS

Unikhimtek-Composite, Holding Company Composite, RUSNANO The project will establish mass production of high-quality composite materials derived from naonmodified hydrocar-bon and mineral fibers and nanofilled bonding materials—prepregs. The nanotechnology applied in manufacturing will imbue products, to be used in the aviation, machine building, and alternative energy industries, with greater strength and other characteristics of hydrocarbon and mineral fibers.

FORECASTED EARNINgS OF THE COMPANY IN 2015

21.692 billion rubles

PROJECT LOCATION

Moscow; Saratov, Saratov Oblast

PROJECT BuDgET

3.46 billion rubles

RuSNANO’S INVESTMENT


Abrasion-resistant parts from nanostructured ceramic and metal ceramic materialsPROJECT PARTICIPANTS

Virial, Siberian Organics, Bank Saint Petersburg, RUSNANO The project will establish mass production of wear-resistant goods (slide bearings, gaskets, nozzles, etc.) and cutting instruments from new generation nanostructured ceramic and metal ceramic materials for businesses in the oil production, oil refining, chemicals, energy, and shipbuilding industries.


3.7 billion rubles; exports will account for 28 percent of sales

PROJECT LOCATION

St. Petersburg

PROJECT BuDgET



562.49 million rubles

Radio frequency identification tags (RFID tags) and metalized packaging materials PROJECT PARTICIPANTS

Galileo Vacuum Systems spa, RUSNANO The project will manufacture RFID tags to replace tradi-tional barcodes in product inventorying and warehousing in retail networks as well as packaging materials and equip-ment that will replace imports. Production will be carried out with innovative nanotechnology for metalizing reel-fed materials developed by Galileo Vacuum Systems spa. The project has already begun pilot production.



PROJECT LOCATION

Moscow Oblast, Italy, Serbia

PROJECT BuDgET

1.892 billion ruble


923.30 rubles

Appendix A Brief Descriptions of Projects Approved by the Supervisory Council of the Russian Corporation of Nanotechnologies in 2009


31

large-scale production of polysilicon and monosilanePROJECT PARTICIPANTS

Usoliye-Sibirskiy Silicon, Nitol Solar group, Alfa Bank, RUSNANO The project will establish Russia’s first large-scale manu-facturing operations for polysilicon and monosilane of solar and energy quality at facilities belonging to chemi-cal company Usoliekhimprom (a member company of Nitol Solar Group) in Usolye-Siberskoye, Irkutsk Oblast. The new production complex will create a raw materials base for growth of the Russian microelectronics industry and spur a new industrial sector, solar energy, to meet domestic demand. Production of polysilicon at design capacity of 3,500 tons per year will be reached in 2010.


14.2 billion rubles

PROJECT LOCATION

Usolie-Sibirskoe, Irkutsk Oblast

PROJECT BuDgET



4.5 billion rubles

New generation flexible packaging PROJECT PARTICIPANTS

Danaflex, RUSNANO The project will establish manufacturing for high-barrier polymer barrier and multilayered film and, using these as feedstock, produce flexible packaging materials. The materials will significantly reduce the need for preser- vatives and will extend shelf life for food and other prod-ucts. Project goods will replace imported packaging in the foodstuffs, household chemicals, and pharmaceutcial sec-tors. The project company plans to reach design capacity in the fourth quarter of 2011.


2.684 billion rubles; exports will account for five percent of sales

PROJECT LOCATION

Republic of Tatarstan

PROJECT BuDgET



1.2 billion rubles

Colloid quantum dots PROJECT PARTICIPANTS

Nanotech-Dubna, scientific research center Kongar, Research Institute of Applied Acoustics (R&D support), RUSNANO Quantum dots to be synthesized at new manufacturing fa-cilities using Nanotech-Dubna technology possess unique florescent properties that allow them to shine brightly for five years or more without fading. Quantum dots are needed to produce LEDs, white light sources, identification tags, and biomedical markers. Other application prospects for quantum dots include high-efficiency solar cells, flexible electronics, and optoelectronic devices. Production at design capacity is expected in 2013.


255 million rubles

PROJECT LOCATION

Dubna, Moscow Oblast

PROJECT BuDgET



35 million rubles

Thermoelectric systems based on Russian breakthrough technology CERATOM PROJECT PARTICIPANTS

TERMIONA, RIO group, Eximbank Hungary Pte Ltd., RUSNANO The project will organize full-scale production of thermo-electric devices for cooling and generating electricity using cutting-edge technology, CERATOM, developed in Russia. Manufacturing facilities will begin operating at capacity in 2014.



PROJECT LOCATION

Zelenograd, an administrative subdivision of Moscow

PROJECT BuDgET

1.6 billion rubles


600 million rubles


32

Cutting tools from cubic boron nitride nanopowderPROJECT PARTICIPANTS

Microbor Holding Ltd., RUSNANO The project will produce cutting instruments from a super-hard material—cubic boron nitride nanopowder—whose hardness is second only to diamonds. Instruments will be used for crude and finished processing of details in the metalworking, automotive, mining, and construction industries. The project will enter mass production in the fourth quarter of 2011.



PROJECT LOCATION

Moscow Oblast

PROJECT BuDgET

904 million rubles


661 million rubles

Nanopowders of rhenium and other metals from technogenic materialsPROJECT PARTICIPANTS

Global Invest, Adron, Khlopin Institute of Radium, Mende-leev Russian Chemical and Technological University, Mo-rozov Plant, St. Petersburg State Polytechnical University, RUSNANO This project will recycle technogenic materials contain-ing rhenim to produce nano-sized powders of rhenium, nickel, wolfram, molybdenum, cobalt, and other products (ultradispersable powders, rods, and bullion) based on those metals. The first production line is to be commission in 2012. Output at design capacity—960 kilograms of rhenium per year—is to be reached by the end of 2013.


414 million rubles

PROJECT LOCATION

Leningrad Oblast

PROJECT BuDgET



79 million rubles

Nano-ink from NovosibirskPROJECT PARTICIPANTS

RUSNANO, SUN Innovations, BANK URALSIB, RUSNANO This project will expand production of high-technology, large-format digital printing: UV inkjet printers, UV nano-ink, and solvent nano-ink. Sun Innovations developed the new production technology. Properties of this digital system for UV-printing are better than similar equipment sold worldwide.



PROJECT LOCATION

Novosibirsk, Novosibirsk Oblast

PROJECT BuDgET



166 million rubles

Innovative heat insulation materials PROJECT PARTICIPANTS

Penosital, Rostovgorstroy, RUSNANO The project will update technology, expand existing pro-duction, and bring into the market highly effective thermal insulation material obtained through nanotechnological processing of crushed off-grade glass, including unsorted glass. It will also develop model plants for production of foamed glass with subsequent replication in Russia and abroad.


3.0 billion rubles

PROJECT LOCATION

Perm, Perm krai

BuDgET FOR THE PROJECT

2.05 billion rubles


1.3 billion rubles


33

high-technology textile productsPROJECT PARTICIPANTS

Ivtekhnomash, RUSNANO The project will expand production of textiles and metal-sputtered films by adopting unique technology for metalizing textiles. The technology permits application of different metals and their compounds in layers that are up to 100 nanometers thick. The layers hold well on the cloth and preserve the air permeability and softness of the fabric. The project will produce medical bandaging mate-rial, high-tech camouflage cloth for the military, and radio shield material.


948 million rubles

PROJECT LOCATION

Ivanovo, Ivanovo Oblast

PROJECT BuDgET

one billion rubles


300 million rubles

Germanium and germanium-based productsPROJECT PARTICIPANTS

Germanium and Applications, RUSNANO This project will create the full production cycle for germa-nium and associated goods—from extraction and enrich-ment of source material containing germanium through its many-staged processing into chemical products, materials, and other merchandise. Four types of materials will domi-nate production: polycrystalline germanium, monocrystal-line germanium, substrates and components for infrared optics made from poly- and monocrystalline germanium, and germanium dioxide. This will give Russian producers of infrared optics, semiconductor detectors, televisions, solar batteries, synthetic fibers, enamels, glazes, and cos-metics access to domestic raw materials.


1.7 billion rubles

PROJECT LOCATIONS

Novomoskovsk, Tula Oblast; Novoshakhtinsky, Primorsky krai; and Moscow

PROJECT BuDgET

2.17 billion rubles


800 million rubles

Nanotechnology-based consumables for copying and printing machinesPROJECT PARTICIPANTS

Slavich Company, Interform, RUSNANO The project will establish industrial production of toner, photoreceptors, and cartridges for copying machines, laser printers, and typography by using functional nano-sized additives and photoconductive material in nanodispersing form. Production, which will begin in the fourth quarter of 2010, will be organized at a plant now engaged in pro-ducing electrophotograhic material.


1.4 billion rubles

PROJECT LOCATION

Pereslavl-Zalessky, Yaroslavl Oblast

PROJECT BuDgET



50 million rubles

Nanoclay polymer compositesPROJECT PARTICIPANTS

Metallist, RUSNANO, coinvestor The project will organize large-scale, modern production of nanomaterials using bulk polymers and their heteropo-lymers. The project company will bring purified modified montmorillonite and its elaboration, polymer nanocom-posites (new types of high-tech nanoproducts), to the market. These products will be capable of competing with the best products offered globally.



PROJECT LOCATION

karachev, Bryansk Oblast

PROJECT BuDgET





34

Road paving modifier UniremPROJECT PARTICIPANTS

Novy Kauchuk, RUSNANO This project will develop commercial production of Unirem, a modified asphalt mixture that increases the useful life of road pavings and lengthens the period between repairs. The project will modify existing production and increase volume of output by 30,000 tons per year.



PROJECT LOCATION

Podolsk, Moscow Oblast

PROJECT BuDgET




Nanostructured catalysts to remove sulfur from associated petroleum gasPROJECT PARTICIPANTS

Start Katalizator, Bioprocess Capital Partners , RUSNANO The project will introduce industrial technology for remov-ing sulfur and mercaptan impurities from associated petroleum gas and other gaseous hydrocarbons by using proprietary nanostructured catalyzers that sweeten the sulfur and mercaptan to elementary sulfur. Production of the catalyzers is to begin in 2011.


1.25 billion rubles

PROJECT LOCATION

Moscow

PROJECT BuDgET



201 million rubles

Flexible polymer packaging productionPROJECT PARTICIPANTS

Uralplastik, RUSNANO This project will organize the first production in Russia of flexible polymer packaging. To modify the polymer nanocomposites, it will use a proprietary manufacturing technology that yields packaging with improved character-istics and lower cost of goods.



PROJECT LOCATION

yekaterinburg, Sverdlovsk Oblast

PROJECT BuDgET



826 million rubles

Nanostructured membranes and modules for water treatmentPROJECT PARTICIPANTS

Vladipor, Polymersintez, RUSNANO This project will give Russia modern high-technology production of nanostructured, porous polymer materials (membranes) and filtering modules based on these mem-branes for separating fluid in medium in various industrial and social spheres.


1.467 billion rubles; exports will account for seven percent of sales

PROJECT LOCATION

Vladimir, Vladimir Oblast

PROJECT BuDgET



810 million rubles

heat-dissipating panels for the lED industryPROJECT PARTICIPANTS

Micro Components Ltd. (Israel),ADG group, Sberbank, RUSNANO The company to be founded under this project will become a major manufacturer of panels for electronic devices requiring heat dissipation, particularly devices with light-emitting diodes. The proprietary technology uses anodization to obtains nanoporous layers of aluminum oxide on an aluminum wafer. Design capacity is expected to be reached in 2015.

FORECASTED EARNINgS OF THE PROJECT COMPANY IN 2015


PROJECT LOCATION

kaliningrad, kaliningrad Oblast

PROJECT BuDgET



120 million rubles


35

Nanostructured microspherical catalyzers and adsorbents PROJECT PARTICIPANTS

Kataliz, Nizhnekamskneftekhim, RUSNANO This project will carry out industrial production of Russian nanostructured mirospherical catalyzers for dehydration of isoparaffins and adsorbents to dry olefin-containing flows. By reducing the cost of monomers, which account for about 60 percent of the cost to produce natural rubber, the project will improve the competitiveness of Russian oil and chemical businesses in the world market for natural rubber and goods made from it. The project company expects to reach design capacity in the second quarter of 2011.


590 million rubles

PROJECT LOCATION

Nizhnekamsk, Republic of Tatarstan

PROJECT BuDgET



186 million rubles

Nanostructure magnesium hydroxide as fireproofing additivePROJECT PARTICIPANTS

Kaustik, NikoMag, RUSNANO This project will design, build, and operate an environmen-tally safe, economically efficient plant where nanostruc-tured magnesium hydroxide will be produced. The plant, which will use technology that Kaustik developed, will have capacity to produce 25,000 tons of the chemical per year. Production is to begin in 2012.

ExPECTED EARNINgS FROM THE COMPANY IN 2015

2.074 billion rubles; exports will account for 63 percent o f sales

PROJECT LOCATION

Volgograd, Volgograd Oblast

PROJECT BuDgET




Production of li-ion batteriesPROJECT PARTICIPANTS

Thunder Sky (China), RUSNANO, financial coinvestor This project will use technology developed by Thunder Sky to produce li-ion batteries for electric vehicles, energy, telecommunications, and a host of other industries. Thunder Sky is the only company in the world today with mass production of accumulator batteries for electric buses and microbuses. Its unique battery charging system completes a charge in under a half hour. The company holds patents for production of high-capacity (to 700 Ah) batteries. Thunder Sky’s technology ensures that its cost of production and price at sale are considerably lower than the nearest competitors’ costs and prices. Large-scale production will begin in 2011.

ExPECTED EARNINgS OF THE COMPANY IN 2015

17.096 billion rubles; export will account for 80 percent of sales

PROJECT LOCATION

Novosibirsk, Novosibirsk Oblast

PROJECT BuDgET



7.74 billion rubles

Thermoelectric microcoolers of bismuth telluride nanopowder for optic-, micro-, and nanoelectronics PROJECT PARTICIPANTS

RMT, S-Group Ventures, Sberbank, RUSNANO The project company will use facilities of RMT to produce thermoelectric microcoolers. It is expected to become one of the world’s leaders in this area. Production is to reach design capacity in 2014–2015.



PROJECT LOCATION

Nizhny Novgorod, Nizhegorodsk Oblast

PROJECT BuDgET

827 million rubles


150 million rubles


36

Pure quartz concentrate and quart powder PROJECT PARTICIPANTS

Polar Quartz, Ural Industry-Ural Polar Corporation, RUSNANO The project will establish vertically integrated production of ultrapure quartz concentrate and quartz powder for the nanoelectronic, optical, lighting engineering, and chemi-cal industries. The production complex will reach design capacity for all its quartz products in 2013.

FORECASTED EARNINgS OF THE COMPANY IN42016


PROJECT LOCATION

Khanty-Mansiysk Autonomous Okrug-Urga

PROJECT BuDgET



1.29 million rubles

Super-large integrated circuits with 90-nanometer process technologyPROJECT PARTICIPANTS

Sistema, RUSNANO The project will supply state-of-the-art microelectronic components to the nonmilitary and defense industries and the consumer market. Production is scheduled to reach design capacity in 2013.


14.0 billion rubles

PROJECT LOCATION

Moscow

PROJECT BuDgET




high-speed optical components using vertically emitting lasers PROJECT PARTICIPANTS

VI-Systems GmbH (Germany), Alferov Center, Ioffe Physical Technical Institute, BANK URALSIB, RUSNANO This project will manufacture chips for radiating elements and detectors for high-speed optical conductors; it will assemble and market optical components. Produc-tion is scheduled to reach design capacity in the first quarter of 2011.



LOCATION OF PROJECT

St. Petersburg

PROJECT BuDgET



755 million rubles

Solar modules using thin film technology from OerlikonPROJECT PARTICIPANTS

Oerlikon Solar AG (Switzerland), Renova Group, RUSNANO The project company will use thin film technology pat-ented by Oerlikon Solar to produce solar modules. Design capacity will be reached in the first quarter of 2012.


10.328 billion rubles all of which will be sold as exports

PROJECT LOCATION

Novocheboksarsk, Republic of Chuvashia

PROJECT BuDgET




Solar elements and solar batteries for the space industry using А3В5 semiconducting materials PROJECT PARTICIPANTS

Kvant, Reshetnev Company-Information Satellite Systems, RUSNANO The project will establish production of solar panels on arsenide gallium photovoltaic elements. These triple-cas-cading solar elements contain up to 30 alternating layers of semiconductors thicknesses of 10 nanometers to 20 nanometers, each absorbing and transforming light from a particular part of the spectrum. Efficiency of such solar elements is 32 percent vs. 15 percent for regular silicon elements. Products are designed, primarily, for manufacturers of space equipment.



PROJECT LOCATION

Moscow


37

PROJECT BuDgET

600 million rubles


550 million rubles

Solar electric units using nanotechnologyPROJECT PARTICIPANTS

Ioffe Physical Technical Institute, RUSNANO, private investor The project will produce nanoheterostructured photo-voltaic convertors that achieve 37 percent to 45 percent efficiency, solar modules, and new generation energy units with Fresnel lenses and a system that tracks the sun. Production technology is based on work carried out at the Ioffe Physical Technical Institute of the Russian Academy of Sciences and uses scientific-technical principles and technological foundations for building basic elements of concentrated solar photovoltaic units. Commercial production will begin in the first quarter of 2013.



PROJECT LOCATION

St. Petersburg

PROJECT BuDgET



1.60 billion rubles

Miniature sensors for detecting explosive gasesPROJECT PARTICIPANTS

EMI (IGM Instruments), ICO (Infrared Components), RECS, Alphasense, RUSNANO The project will establish production of miniature sensors that ascertain concentrations of explosive gases (hydrocar-bons). A unique technology will be used to form the nano-sized semiconducting layers during manufacturing. These sensors are capable of working where moisture is high and oxygen, absent; they require little energy; and they do not become poisoned from the substances in the gas. The sensors have a service life of seven years. Commercial production is scheduled to get underway in the third quarter of 2011.


1.619 billion rubles; exports will account for up to 97 percent of sales

PROJECT LOCATION

St. Petersburg

PROJECT BuDgET



209 million rubles

Optical fiberPROJECT PARTICIPANTS

Finproekt, Republic of Mordovia, RUSNANO The project will realize Russia’s first commercial produc-tion of optical fibers, applying the field’s most up-to-date achievements in creating nanostructures in fiber optics and using nanotechnology to improve characteristics of the fiber. Commercial production will begin in 2012 or 2013.



PROJECT LOCATION

Saransk, Republic of Mordovia

PROJECT BuDgET




Bifacial monocrystalline silicon solar elements and modules PROJECT PARTICIPANTS

Konti Group, Solar Wind, Kvark, RUSNANO High-tech automation will be used in this production project for solar modules of monocrystalline silicon with bifacial light sensitivity of 120 mW. Mass production will be initiated in 2012.



PROJECT LOCATION

krasnodar, krasnodar krai

PROJECT BuDgET





38

high-powered, high-performance laser diodesPROJECT PARTICIPANTS

General Nano Optics, Limited, RUSNANO, private investor This project will produce a new type of high-powered, high-performance laser diodes, broadening application of laser diodes and taking the company-producer into a leading position in domestic and foreign markets.



PROJECT LOCATION

krasnogorsk, Moscow Oblast

PROJECT BuDgET



765 million rubles

Nanovaccines and biopharmaceuticals in pseudo-adenoviral nanoparticles and self-assembling nanostructuresPROJECT PARTICIPANTS

Ntpharma, Gamaleya Institute of Epidemiology and Microbiology of the Russian Academy of Medical Sciences, RUSNANO The project will produce nanovaccines based on recombi-nant 70-nanometer to 80-nanometer pseudo-adenoviral particles, self-assembling 40-nanometer to 200-nanome-ter nanostructures with carbohydrate-binding domain. Production of pharmaceuticals under GMP regulation will begin in the first quarter of 2012.



PROJECT LOCATION

Pereslavl-Zalessky, Yaroslavl Oblast

PROJECT BuDgET



1.3 billion rubles

Blood coagulation testing instrumentsPROJECT PARTICIPANTS

Center for Theoretical Problems in Physical and Chemical Pharmacology, Russian Academy of Sciences; Hematology Research Centre, Russian Academy of Medical Sciences; State Scientific Research Testing Institute of Military Medi-cine; Zhiva; Advanced System Technologies: RUSNANO The project will manufacture new diagnostic instru-ments that make it possible to detect both types of blood coagulation disorders—insufficient blood coagulation (hemophilia) and excessive blood coagulation, a cause of thrombosis. Production will begin in 2012.


1.49 billion rubles

PROJECT LOCATION

Moscow

PROJECT BuDgET



575 million rubles

Laser units of erbium garnet obtained from nano-sized oxidic powderPROJECT PARTICIPANTS

New Technologie Engineering Center, RUSNANO, private investor The project will expand production of active elements based on yttrium aluminum garnet (Y3Al5O12) doped with ions of erbium, and laser systems that employ them. Mass production of goods is expected to begin in the third quarter of 2013.



PROJECT LOCATION

Troitsk, Moscow Oblast

PROJECT BuDgET



929 million rubles


39

Nanopharmaceuticals for diagnosis and treatment of malignant neoplasmsPROJECT PARTICIPANTS

Blokhin Cancer Research Center of the Russian Academy of Medical Sciences, Yunona Holding, RUSNANO The project will develop and manufacture nanostructure antineoplastic drugs and diagnostic methods for malig-nant neoplasms. Mass production of the nanodrugs is slated to begin in 2012.



PROJECT LOCATION

Moscow, yekaterinburg

PROJECT BuDgET




Bicuspid and innovative tricuspid heart valves of new generation materialsPROJECT PARTICIPANTS

Roskardioinvest, Moscow Venture Company, RUSNANO The project will modernize and expand production of bicuspid heart values and develop, produce, and bring to market a new tricuspid valve resembling the natural valve. The latter uses a nanolayered implantation of carbon in a titanium ring for biocompatibility and as a barrier to metal ions.



PROJECT LOCATION

Moscow

PROJECT BuDgET


RuSNANO WILL FINANCE

930 million rubles

Nanopharmaceuticals using a phosphorus lipid transportation nanosystem PROJECT PARTICIPANTS

Institute of Biomedical Chemistry of the Russian Academy of Medical Sciences, EcoBioFarm Dubna This project will organize commercial production of nano-pharmaceuticals that use a phosphorus lipid transporta-tion nanosystem. The manufacturing technology will be used for the first time in the Russian Federation. Sale of the new drugs is expected to begin in 2012.



PROJECT LOCATION

Dubna, Moscow Oblast

PROJECT BuDgET

831 million rubles



Electrochemical equipment produced with nanostructured materials and nanometrically structured surfaces PROJECT PARTICIPANTS

TITAN ECM, RUSNANO The project will initiate export-oriented commercial manu-facturing of precision electrochemical machinery used for production of metal and hard alloy details for the aviation and auto industries, medicine, and other sectors. Produc-tion will begin in 2014.



PROJECT LOCATION

Ufa, Republic of Bashkorostan

PROJECT BuDgET



143 million rubles


40

Nanoceramic composites for metalworkPROJECT PARTICIPANTS

Kartukov Mechanical Engineering Design Bureau Iskra, Nanomer, RUSNANO The project will establish mass production of units for synthesizing nanoceramic composites on the surface of metal valve parts and the processing of finished goods. Existing laboratory-manufacturing facilities will be used for the project’s work. Production will begin in 2011.


780 million rubles

PROJECT LOCATION

khimki, Moscow Oblast

PROJECT BuDgET



220 million rubles

Nanostructured nonmetallic coatings PROJECT PARTICIPANTS

Tomsk State University, EleSy, RUSNANO, coinvestor The project will operate processing lines for applying inorganic, non-metallic ceramic coatings to metal surfaces. The micro-arc oxidation technology that the lines will use imbues components of aluminum, magnesium, titanium, and zirconium with heat and wear resistance, gives them protection from corrosion, and adds decorative qualities.


752 million rubles; exports will account for 40 percent of sales

PROJECT LOCATION

Tomsk, Tomsk Oblast

PROJECT BuDgET

355 million rubles


50 million rubles

Multifunctional nanostructured coatings PROJECT PARTICIPANTS

Technological Systems for Protective Coatings, Rosatom, United Engine-Building Corporation, Bochvar All-Russian Scientific Research Institute for Inorganic Materials, Ufa Engine Industrial Association, RUSNANO The project will establish a network of innovative pro-duction centers offering comprehensive solutions for multifunctional nanostructured protective coatings to refurbish and extend the useful life of equipment in Russia’s mechanical engineering, fuel and energy, metallurgy, oil and gas, and aviation industries.



PROJECT LOCATIONS

Moscow, Tyumen, Surgut, St. Petersburg, Perm, Ufa, kursk

PROJECT BuDgET



1.22 billion rubles

Equipment for applying modified nanometer coatingsPROJECT PARTICIPANTS

Laboratory 23, ZAO Tomsk Polytechnic University RUSNANO The project will expand production of equipment used to apply modified coatings of nanometer thicknesses on ma-terials and goods by using a plasma magnetron discharge and beams of charged particles.


450 million rubles

PROJECT LOCATION

Tomsk, Tomsk Oblast

PROJECT BuDgET

320 million rubles


120 million rubles


41

Technical center for production of electronic nanomaterials and 3D electronic devices and for 3D assembly PROJECT PARTICIPANTS

NANO3D SYSTEMS, Voronezh Semiconductor Plant-Assembly, RUSNANO, coinvestor The project will produce electrochemical materials based on self-limiting additives used in 3D assembly of crystals with current-carrying channels in silicon, metallization of integrated circuits, and solar elements. It will also organize a center for development of technical processes of 3D assembly and produce electronic goods with 3D TSV as-sembly.



PROJECT LOCATION

Voronezh, Voronezh Oblast

PROJECT BuDgET



300 million rubles

Equipment for molecular beam epitaxy and the planar process (infrastructure project) PROJECT PARTICIPANTS

Semiconductor Technologies and Equipment (SemiTEq), RUSNANO, coinvestors This project will expand production of company SemiTEq, organize sales systems, introduce allied technology, and develop new technologies, including production of mo-lecular beam epitaxy equipment.



PROJECT LOCATION

St. Petersburg

PROJECT BuDgET

630 million rubles


140 million rubles

Ultrastrength homogeneous nanostructured springsPROJECT PARTICIPANTS

IZHMASH, BANK URALSIB, RUSNANO The project will produce nanostructured springs with greater strength, wear resistance, geometric exactitude, and service life. Products are essential for railway cars and locomotives, power plants, suspension systems for auto-mobiles and agricultural equipment, and lifting systems.

MASS PRODuCTION OF THE SPRINgS

will begin in 2012.

FORECASTED EARNINgS IN 2015


PROJECT LOCATION

Izhevsk, Republic of Udmurtia

PROJECT BuDgET

1.11 billion rubles



Russian warehouse and catalog of chemical and biochemical reagentsPROJECT PARTICIPANTS

I. A. Popkov, RUSNANO This project will establish essential infrastructure to maintain the full range of services for ultrapure chemi-cal and biochemical reagents for Russian producers and research organizations working in high-tech industries and nanotechnology and also help promote their products in Russian and foreign markets.

FORECAST OF EARNINgS IN 2015

848 million rubles.

PROJECT LOCATION

Moscow Oblast

PROJECT BuDgET

105 million rubles


58 million rubles


42

DFJ-VTB Aurora family of funds in nanotechno-logy and innovation with participation of international venture fund leader Draper Fisher JurvetsonPROJECT PARTICIPANTS

RUSNANO, VTB Group, Draper Fisher Jurvetson This family of funds for investment in promising nano-technological advances in Russian and abroad will attract resources from Russian and foreign investors to innovative projects. Investment in rapidly growing nanotechnol-ogy companies in Russia will stimulate development of infrastructure in the Russian market. The funds are to be created in 2010.

PROJECT LOCATION

Moscow

PROJECT BuDgET

3.0 billion rubles


1.65 billion rubles

RUSNANO international fund Rusnano CapitalThe goals of this project are to attract international institutional investors to Russia’s nanoindustry; to give the country direct access to the latest foreign technol-ogy, intellectual capital, and project expertise; to transfer technology to Russia through the establishment of specific production projects. The project will establish a family of funds in a foreign jurisdiction. The funds will operate under the control of a subsidiary of RUSNANO—Rusnano Capital. To form and control the portfolio of projects and to draw foreign investors, the project will contract with managing partners of the fund who will be chosen through competitive proce-dures.

ANTICIPATED SIzE OF THE FuND

up to one billion dollars

RuSNANO’S INVESTMENT uP TO

500 million dollars

Russian-Kazakh venture fund in nanotechnologyPROJECT PARTICIPANTS

Kazyna Capital Management, RUSNANO This project is dedicated to stimulating advances in nanotechnology and introducing these advances into the economies of the Republic of Kazakhstan and the Russian Federation.

TERM OF THE FuND

2010 – 2020

PROJECT LOCATION

Moscow

PROJECT BuDgET

3.15 billion rubles


787 million rubles

Sector fund for nanotechnology in the metallurgy industryPROJECT PARTICIPANTS

RUSNANO, coinvestor The fund will grow portfolios of companies and attract resources from private investors for support of promising nanotechnology projects in metallurgy, one of the preemi-nent sectors in Russia’s economy and an area of Russian leadership in world markets.

PROJECT TERM

2010 – 2018

PROJECT LOCATION

Moscow

PROJECT BuDgET

5.0 billion rubles


1.5 billion rubles


43

Fund for small-budget nanotechnology projectsPROJECT PARTICIPANTS

RUSNANO, coinvestors The fund will choose its projects from small and medium-sized innovative companies that are planning or realizing projects at scientific research institutes and other subdivi-sions of the Russian Academy of Sciences, technoparks, science towns, technology innovation zones, and higher educational institutions and their branches located within the Siberian Federal Okrug, and in other regions of the Russian Federation. The fund will support key institutes in the Siberian Branch of the Russian Academy of Sciences. The fund will stimulate development and introduction of nanotechnology in the country and finance small nano-technology projects that seek to establish, broaden, or modernize production and that offer attractive investment opportunities.

PROJECT TERM

2010 – 2017

PROJECT LOCATION

Moscow

PROJECT BuDgET

2.0 billion rubles


980 million rubles


44

Appendix B Members of the Management Bodies of the Corporation as of December 31, 2009

Members of the Supervisory Council of the Russian Corporation of Nanotechnologies.

ANDREy ALExANDROVICH FURSENkO

Chairman, Supervisory Council, RUSNANO Minister of Education and Science of the Russian Federation

VLADIMIR ALExANDROVICH DMITRIEV

Chairman, Bank for Development and Foreign Economic Affairs (Vnesheconombank)

MIkHAIL VALENTINOVICH kOVALCHUk

Director, Russian Research Center kurchatov Institute

ANDREy AFANASyEVICH kOkOSHIN

First Deputy Chairman, State Duma Committee on Science and Science-Intensive Technologies

DMITRy FEDOROVICH MEZENTSEV

Governor, Irkutsk Oblast

LEONID BORSIOVICH MELAMED

President, Effortel

ElVIRA SAKhIPZADOVNA NABIULLINA

Minister of Economic Development of the Russian Federation

VLADIMIR PAVLOVICH NAZAROV

Deputy Secretary of the Security Council of the Russian Federation

MIkHAIL ASLANOVICH POGOSyAN

Director General, Sukhoi Company

VASILy MIkHAILOVICH POPIk

Deputy Head, Presidential Experts’ Directorate of the Russian Federation

MIkHAIL DMITRyEVICH PROkHOROV

President, ONExIM Group

EVGENy ALEkSEEVICH FEDOROV

Chairman, State Duma Committee on Economic Policy and Entrepreneurship

VIkTOR BORISOVICH kHRISTENkO

Minister of Industry and Trade of the Russian Federation

hUSEIN DZhABRAIlOVICh CHECHENOV

Chairman, Federation Council Committee on Education and Science

ANATOLy BORISOVICH CHUBAIS

Chairman, Executive Board and Chief Executive Officer Russian Corporation of Nanotechnologies


45

Members of the Science and Technology Board of the Russian Corporation of Nanotechnologies.

MIkHAIL VLADIMIROVICH ALFIMOV

Chairman, Science and Technology Board, RUSNANO Director, Photochemistry Center, Russian Academy of Sciences

VIkTOR VASILyEVICH AVDEEV

Director, Unikhimtech

ALExANDER LEONIDOVICH ASEEV

Vice President, Russian Academy of Sciences Director, Institute of Semiconductor Physics, Siberian Branch, Russian Academy of Sciences

IVAN IVANOVICH BELyAEV

Adviser, Secretariat of the Security Council of the Russian Federation

VLADIMIR BORISOVICH BETELIN

Director, Research and Development Institute of Systematic Studies, Russian Academy of Sciences

ALExANDER LEONIDOVICH GINTSBURG

Director, Institute of Epidemiology and Microbiology, Russian Academy of Medical Sciences Vice President, Russian Academy of Medical Sciences

EVGENy NIkOLAEVICH kABLOV

General Director, All-Russian Scientific Research Institute for Aviation Materials

yURI NIkOLAEVICH kOPTEV

Chairman, Science and Technology Board, Russian Technologies

DMITRy VIkTOROVICH LIVANOV

Rector, Moscow Institute of Steel and Alloys

MOISEI ABRAMOVICH LOkSHIN

Deputy Chief Engineer for Science, Sukhoi Design Bureau

OLEG STEPANOVICH NARAIkIN

Deputy Director for Scientific Study, kurchatov Institute

VLADIMIR ALEkSEEVICH PIVNyUk

Member, Science and Technology Board, Russian Corporation of Nanotechnologies

ALExANDER VALENTINOVICH PUTILOV

Head, Moscow Engineering Physics Institute

kONSTANTIN VIkTOROVICH SEVERINOV

Group head, Institute of Molecular Genetics, Russian Academy of Sciences

kONSTANTIN GEORGIyEVICH SCRyABIN

Director, Bioengineering Center of the Russian Academy of Sciences

MIkHAIL NIkOLAyEVICH STRIkHANOV

Rector, Moscow Engineering Physics Institute

VLADIMIR EVGENyEVICH FORTOV

Director, Joint Institute for High Temperatures, Russian Academy of Sciences

VLADIMIR yAROSLAVOVICH SHEVCHENkO

Director, Institute of Silicate Chemistry, Russian Academy of Sciences

yURy VLADIMIROVICH SHISHkIN

Assistant to the President, Russian Academy of Medical Sciences Department head, Russian Oncological Scientific Center, Russian Academy of Medical Sciences


46

Members of the Committee for Investment Strategy under the Supervisory Council of the Russian Corporation of Nanotechnologies.

PAVEL MIkHAILOVICH TEPLUkHIN

Chairman, Committee for Investment Strategy under the Supervisory Council, RUSNANO Managing Director, Troika Dialog Group

DMITRy IGOREVICH AVERyANOV

Advisor to the Chairman of the Board of Directors, BANk URALSIB

MIkHAIL VLADIMIROVICH GAMZIN

CEO, Technoprom Innovation Corp.

ALEkSEy VLADIMIROVICH GOSTOMELSky

Managing Partner, ValueTech Advisers

OLGA kONSTANTINOVNA DERGUNOVA

Member, Management Board VTB Bank

SERGEy kONSTANTINOVICH DUBININ

Member, Board of Directors VTB Capital and VTB Group

BORIS IOSIFOVICH MINTS

President and Chairman of the Board of Directors, OTkRITIE Financial Corporation Member, Board of Directors of the Russian Union of Industrialists and Entrepreneurs

SEPPO yUkHA REMES

General Director, kiuru

SERGEy VIkTOROVICH SkVORTSOV

Managing Director, Troika Dialog Group

OLGA ALExANDROVNA wILLS

Independent Financial Consultant, Corporate Finance and Investment and Banking Services

ARTEM LEONIDOVICH yUkHIN

Director, Venture Capital Investments, Troika Capital Partner

Members of the Executive Board of the Russian Corporation of Nanotechnologies.

ANATOLy BORISOVICH CHUBAIS

Chief Executive Officer, Chairman of the Executive Board

ANDREy BORISOVICH MALySHEV

Deputy Chief Executive Officer

yAkOV MOISEEVICH URINSON


ALExANDER PROkHOROVICH LOSyUkOV

Deputy Chief Executive Officer for International Cooperation

DIONIS SERGEEVICH GORDIN

Managing Director, Department of Investments

ANDREy VLADISLAVOVICH TRAPEZNIKOV

Corporate Director

SERGEy VLADIMIROVICH KAlYUZhNYI

Director, Scientific and Technological Expertise Department

ANDREy GENNADIEVICH SVINARENkO


yURI ARkADIEVICH UDALTSOV

Director for Innovative Development


47

Appendix C Primary Documents Regulating the Activities of the Russian Corporation of Nanotechnologies

The corporation had its beginnings in presidential initia-tive, federal law, and governmental decrees. Documents developed within the corporation set strategy, create management bodies and subdivisions, apportion respon-sibilities, and establish operating procedures. Some of the internal documents, more central to issues presented in this year’s report, are listed below along with major documents from the government:

1. Presidential initiative № Pr-688 Strategy for Develop-ment of a Nanoindustry (instructions of the President of the Russian Federation dated April 24, 2007)

2. Federal law № 139-FZ On the Russian Corporation of Nanotechnologies dated July 19, 2007 (as amended by federal law № 58-FZ dated April 9, 2009)

3. Decree of the Government of the Russian Federation on the federal target program Development of Infra-structure for the Nanoindustry in the Russian Federa-tion for 2008–2010 № 498 dated August 2, 2007

4. Business Strategy of the Russian Corporation of Nano-technologies to 2020, (approved by the Supervisory Council of the corporation on May 29, 2008)

5. Regulations on the Supervisory Council of the Russian Corporation of Nanotechnologies (approved by the Supervisory Council of the corporation on December 5, 2007)

6. Regulations on the Audit Commission of the Russian Corporation of Nanotechnologies (approved by the Supervisory Council of the Russian Corporation of Nanotechnologies on December 5, 2007)

7. Regulations on the Executive Board of the Russian Corporation of Nanotechnologies (approved by the Supervisory Council of the Russian Corporation of Nanotechnologies dated December 5, 2007)

8. Regulations on the Science and Technology Board of the Russian Corporation of Nanotechnologies (approved by the Supervisory Council of the Russian Corporation of Nanotechnologies on December 25, 2007)

9. Regulations on the Committee for Investment Strategy under the Supervisory Council of the Russian Corpora-tion of Nanotechnologies (approved by the Supervisory Council of the corporation on March 20, 2008)

10. Regulations for Conducting Expert Evaluations of Proj-ects of the Russian Corporation of Nanotechnologies (endorsed by the Supervisory Council of the corpora-tion on December 25, 2007)

11. Decree of the Government of the Russian Federation № 127 On the Course, Form, and Conditions for In-vestment with Limitation on the Amount of Invested Temporarily Free Monetary Resources of the Russian Corporation of Nanotechnologies dated February 28, 2008)

12. Order of the Ministry of Finance of the Russian Fed-eration № 127 On the Implementation of the Decree of the Government of the Russian Federation dated February 28, 2008, On the Course, Form, and Condi-tions for Investment with Limitation on the Amount of Invested Temporarily Free Monetary Resources of the Russian Corporation of Nanotechnologies № 33n dated March 17, 2008

13. Concept for the Conduct of an Annual Nanotechnol-ogy International Forum (endorsed by the Supervisory Council of the Russian Corporation of Nanotechnolo-gies on January 31, 2008)

14. Regulations on the Investment Commission under the Executive Board of the Russian Corporation of Nanotechnologies (approved by the Supervisory Council of the Russian Corporation of Nanotechnolo-gies on April 24, 2009)

15. Procedures and Conditions for Financing Research and Development Activities in the Area of Nanotech-nology, Projects in Nanotechnology that Anticipate Introducing Nanotechnology, or the Manufacture of Products in the Nanoindustry, or Projects for the Preparation of Nanotechnology Specialists (approved by the Supervisory Council of the Russian Corporation of Nanotechnologies on February 28, 2008)

16. Order On the Functions and Structure of Subdivisions and Allocation of Authority within the Corporation of Nanotechnologies dated May 12, 2009

17. Polices on the Order and Form of Participation by the Russian Corporation of Nanotechnologies in Venture and Seed Funds in Nanotechnology (endorsed by the Supervisory Council of the Russian Corporation of Nanotechnologies on June 2, 2009)

18. Concept for RUSNANO Nanotechnology Centers (endorsed by the Supervisory Council of the Russian Corporation of Nanotechnologies on October 13, 2009)


48

Annual Financial (Accounting) Report of the Russian Corporation of Nanotechnologies for the year 2009

Property, capital, and obligations of the corporation in 2009 (in thousands of rubles).

AT THE BEGINNING OF 2009 AT THE END OF 2009 CHANGE

ASSETS

Non-current assets total: 320,532 27,326,024 27,005,492

including:

long-term financial investments 640 26,416,718 26,416,078

Current assets total: 135,926,008 49,450,223 -86,475,785

including:

Short-term financial investments 130,000,142 41,161 139 -88,839,003

Cash and cash equivalents 4,423,836 1,000,141 -3,423,695

TOTAL 136,246,540 76,776,247 -59,470,293

LIABILITIES

Capital and reserves 135,405,844 76,637,770 -58,768,074

long-term obligations – – –

Short-term obligations 840,696 138,477 -702,219

TOTAL 136,246,540 76,776,247 -59,470,293

Changes in Assets and Liabilities of the Corporation

The source of financing for the activities of the corpora-tion in 2009 was an asset contribution of 130 billion rubles from the Russian Federation, received in Novem-ber 2007.

During 2009 capital of the corporation decreased by 58.768 billion rubles and at yearend stood at 76.638 billion rubles. Change in the corporation’s capital is attributable to the return of 66.4 billion rubles of the asset contribution to the Russian Federation (decree № 1455-r by the Government of the Russian Federation dated October 5, 2009), expenditures

of 3.617 billion rubles in fulfillment of the corpora-tion’s purposes, and net income of 11.251 billion rubles earned largely from temporarily free monetary resources deposited in accounts at commercial banks in accordance with recommendations from the Ministry of Finance of the Russian Federation.

The corporation had short-term obligations at the beginning of 2009 of 840.7 million rubles; at yearend, 138.5 million rubles. Of this sum, 88 percent was in obligations to vendors and contractors for delivery of goods and provision of services and eight percent was in obligations to the government for 2009 taxes.


49

Income of the corporation in 2009 was derived, largely, from interest earnings on monetary resources placed on deposit in commercial banks. Net income was 11.251 billion rubles.

Financial results of the activities of the Russian Corpora-tion of Nanotechnologies were reported in accordance with Russian accounting standards. The corporation’s auditors, PricewaterhouseCoopers, have confirmed the reports. The auditor’s opinion appears below.

Results of Investing Temporarily Free Monetary Resources of the Corporation

Temporarily free monetary resources of the corporation are managed in conformance with requirements of the Ministry of Finance of the Russian Federation, decree № 127 of the Government of the Russian Federation dated February 28, 2008, and policies approved by the Supervisory Council of the corporation (protocol № 17 dated May 12, 2009).

Its strategy to safeguard and increase the assets of the corporation is fundamental to RUSNANO’s policies for investing temporarily free monetary resources. while expecting stable earnings with minimal risk, preser-vation of capital and security of investments—not income—is paramount.

The average annual interest rate on deposits from January 1, 2009, through December 31, 2009, was 10.76 percent.

The strategy chosen for investing temporarily free monetary resources fully safeguarded the assets of the corporation under conditions of economic downturn and made it possible to support investment projects at planned levels by withdrawing funds from deposits without interest rates being lowered.

Execution of Annual Plan for Income and Expenses (Budget) of the Corporation

The Supervisory Council of RUSNANO adopted the budget for 2009 on April 7, 2009.

Income earned during 2009 was 14.663 billion rubles:

Interest income from investments, 14.374 billion rubles, exceeding the budgeted amount by 4.219 billion rubles

Net earnings from the Nanotechnology International Forum, 39.0 million rubles

Receipts from providing financial guarantees, 54.0 million rubles

Other receipts, 196.4 million rubles

In 2009 the Russian Corporation of Nanotechnologies expended 106.935 billion rubles, including the return of 66.4 billion rubles in material contributions to the Rus-sian Federation. Total expenditures of the corporation were lower than planned.

The corporation financed projects in manufacturing, infrastructure, and education totaling 32.213 billion rubles. It had planned to disburse 25.531 billion rubles in support of project financing.

Due to higher than budgeted earnings on temporarily placed free monetary resources, the corporation’s pay-ment to tax authorities exceeded the budget amount.

Reserves and Funds of the Corporation

As a result of decisions made by the Supervisory Coun-cil, resources in the target funds at yearend 2009 were:

Fund for Investment and Development, 13.245 billion rubles

Reserve Fund, one billion rubles

Fund for Sponsorship and Philanthropy, 101.8 million rubles

Fund for Material Incentives and Social Support, 161.9 million rubles

Actual expenditures from target funds during 2009 totaled 240.6 million rubles.


50

Auditor's Opinion on the Financial (Accounting) Reports


51


52


53

Results of Monitoring the Implementation of Projects Financed with Resources of the Corporation

In 2009 RUSNANO developed and adopted Technical Guidelines for Completing and Presenting Temporary Forms for Monitoring the Implementation of Projects Financed with Resources of the Corporation. Those guidelines led to a system of data collection through nine forms reflecting:

Fulfillment of budget during pre-investment evalua-tion for the projects

Compliance with schedules for financing of the projects

Execution of cash flow plans by the project companies

Achievement of annual plans for project realization by the project companies

Each quarter project companies are requested to sub-mit financial reports—the equivalent of balance sheets and income statements. Each month the banks of the project companies make independent reports about monies expended by the projects and cash remaining in their accounts. Reports are made to the Finance and Credit Department in a single system using a common methodology.

RUSNANO and Ernst & Young are refining a complex of regulatory documents for monitoring investment projects.

In 2009 the corporation expended 32.213 billion rubles to finance investment projects. In addition to these billions invested in nanotechnology, the corporation furnished guarantees of 2.7 billion rubles to nanotech-nology-based projects. Nearly all the investments, 99.5 percent, that RUSNANO made during the year were to finance manufacturing and infrastructure proj-ects. The corporation furthered its educational goals with grants totaling 7.7 million rubles. It contributed 153 million rubles in owner’s equity to investment funds formed with its participation. The table below contains the list of projects financed by the corporation in 2009.

Although activities of most project companies have just begun, by yearend four of the projects had already produced and shipped goods. They are project numbers 448 (project company New Instrumental Solutions), 821 (project company RusChemBio), 854 (project com-pany Usolie-Sibirsky Silicon), and 952 (project company Connector Optics). The four companies earned revenue of 176.5 million rubles, including 87.7 million rubles from the export of goods.


54

Projects financed by the Russian Corporation of Nanotechnologies, levels of financing in 2009.

№ BRIEF DESCRIPTION OF THE PURPOSES OF THE PROJECTS FINANCING IN 2009 (RUBLES)

1Develop, design, and build the BETA high-tech science and production complex to manufature cascade plasmapheresis equipment using track membranes

1.29 billion

2 Establish a business to produce solid-cast carbide tooling with multilayer nanostructured coatings 483.11 million

3Create an international master’s degree program—an interdisciplinary program between the Moscow Institute of Steel and Alloys and the Moscow Engineering Physics Institute—in nanodiagnostics, metrology, standardization, and product certification in nanotechnology and the nanoindustry

7.71 million

4 Establish production of microsources, microspheres, and components for administering brachytheraphy 382.46 million

5 Establish mass production of super-large integrated circuits with 90-nm process technology 6.48 billion

6 Organize production of composite materials from nanomodified hydrocarbon and mineral fibers with nanofilled binding agents 3.25 billion

7 Establish production of competitive products made from nanostructured ceramic and metal-ceramic materials 261.18 million

8 Create infrastructure to house, safeguard, catalog, and supply ultrapure chemical and biochemical reagents 42.83 million

9 Establish production of RFID tags and metalized packaging materials 923.30 million

10Organize production of solid-state light engineering for a new generation of environmentally sound, energy-saving lights based on nanotechnology

322.66 million

11 Establish Russia’s first large-scale facility for mass production of polycrystalline silicon and monosilane 4.50 billion

12Establish mass production of ultrastrength springs using a hot-winding and tempering technology that forms a uniform nanosized substructure

279.94 million

13 Establish large-scale production of cutting instruments made from cubic boron nitride nanopowder 40.00 million

14 Create the Skolkovo-Nanotech closed-end mutual fund for venture investments 150.00 million

15 Organize production of high-speed optical components using vertically emitting lasers 270.06 million

16 Establish a business to produce solar modules using thin film technology from company Oerlikon 13.53 billion

17 Establish the RUSNANO international fund (Rusnano Capital) 2.91 million

Total: 32.21 billion