New Delhi, Mar 13 (IANS): Russia will provide financial aid to expand Sistema Shyam TeleServices (SSTL), a joint venture of Russian conglomerate Sistema and India's Shyam group, Prime Minister Vladimir Putin said Friday.

"We are ready to contribute funds for your joint activity," Putin said in response to a question at a conference with Indian businessmen here.

Sistema is the majority shareholder in the joint venture with a 73.71 percent equity stake.

SSTL was among nine new companies that were given licenses early last year to launch mobile services in all the 22 circles across the country.

SSTL, which operates under the MTS brand, said it has plans to raise debt from the Indian market as well.

According to Russian officials, the government had earlier this month approved state aid worth $676 million.

Sistema, one of the largest diversified corporations in Russia, also plans to enter other sectors in India, including the manufacturing of high-tech products, biotechnology and pharmaceuticals