Russian State Bank to Support GLONASS Projects

Russian companies looking to develop GLONASS products and services can soon tap into an 8-billion-ruble fund. Russian state development bank Vnesheconombank (VEB) plans to offer financial support for projects using GLONASS, pending government approval, according to the Russian news agency Ria Novosti.

VEB’s sister fund, VEB Innovations, will set up the GLONASS Fund in the fourth quarter of this year, with funds made available by next February-March. The fund will include 5 billion rubles ($122 million) from VEB and 3 billion rubles ($73.1 million) from private investors.

The project is designed to expand GLONASS market share, both to acquire advanced technology and attract new customers. It aims to support small companies with new, innovative ideas. Its goals will include the creation of an investment model that will ensure that the most promising and viable projects reach market, from conception to production.

Assistance will be sought from specific European, North American and Asian technology companies, including Norway’s Q-free, Switzerland’s Saphyrion, Slovakia’s Sygic, the Netherlands’ AND, France’s Benomad, and the Germany companies Peiker, Init and IVU. Each of these companies is involved in navigation, with hardware, software, GIS and mapping software, telematics or dispatching. The GLONASS Fund concept says that by using these technologies for the development of new domestic products and services, GLONASS can achieve technical superiority in all the major segments of the global navigation and information market.

The fund’s support will include contacts with Russian trade representatives abroad to promote the Russian products in markets such as India, Latin America and the Middle East.