MOSCOW, August 27 (RIA Novosti) - Russian prosecutors have begun inspections of state-run corporations following instructions from President Dmitry Medvedev, the Prosecutor General's Office said on Thursday.

Office spokesperson Marina Gridneva said prosecutors were looking into how well corporations were complying with federal regulations and their own statutes, as well as how they were using state funds and property.

The corporations undergoing checks are nuclear power corporation Rosatom, Russian Technologies Corporation, nanotech corporation Rosnano, national development bank Vnesheconombank, and Olympstroi, which is overseeing preparations for the 2014 Winter Olympics in Sochi.

"Working groups set up by the Prosecutor General's Office have been working at state corporations since early this week," Gridneva said.

Earlier this month, Medvedev ordered a thorough review of the activity of state-run corporations to decide on "the expediency of the future use of such business structures as state-run corporations."

Media reports have suggested that the state corporations could eventually be abolished. The business daily Kommersant said in March that the idea was proposed, in particular, by a presidential council on codification and improvement of civil legislation.

A draft concept ordered by Medvedev in July 2008 proposes that state corporations be reorganized as legal and business entities without the special status and privileges that they have now.

At present there are seven state corporations in Russia. The Prosecutor General's Office said checks of the Deposit Insurance Agency (ASV) and the Fund for Reforming the Housing and Utilities Sector had already been completed.

In addition, a law was passed in July on the establishment of a state company, Russian Highways (Avtodor), to develop the country's highway network.