Russian President Dmitry Medvedev has rubber stamped a plan to create a huge state-owned IT company which he hopes will play a crucial role in developing the country's technology sector and diversifying the economy.

Assets from 426 companies, including a 51 percent stake in AirUnion, an alliance of Russian regional airlines, have been added into the company, which will be called Russian Technologies. The deal is controversial because there are fears that some of the assets will simply be flogged and the whole thing is a cunning plan to cover up a privatization.

Certainly, Russian Technologies head, Sergei Chemezov, said there were plans to sell some of the assets, Russian media reported. This, of course, means that someone will get very rich and chances are it will not be the IT companies.

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