MOSCOW, July 23 (RIA Novosti) - Russian President Vladimir Putin has signed a federal law to establish a state nanotechnology corporation, a Kremlin spokesman said Monday.

A draft law on setting up the Russian Nanotechnologies Corporation was adopted by the lower house of parliament on July 4 and approved by the upper house on July 6.

Nanoscience, in which matter is manipulated on the atomic scale, is believed by scientists to have potentially far-reaching applications in diverse fields including construction, energy storage and production, the treatment of diseases, and agriculture.

The Russian corporation's functions will include interaction between government, business, and scientists on implementing state policy in nanotechnology and the nano-industry, and providing organizational and financial assistance to programs and the selection of nanotech projects.

First Deputy Prime Minister Sergei Ivanov, who is in charge of high-technology development, said in June the government would allocate 200 billion rubles ($7.7 billion) to develop nanotechnology until 2015.