Russian government-owned development bank, Vnesheconombank (VEB), and e-procurement resource platform Roseltorg are teaming up on a new blockchain project.

Using blockchain technology, the project aims to build a platform for transparent electronic transactions between the government departments and businesses. The project would also facilitate new methods for storing and verifying information as part of the move towards a digital economy, a press release states.

The new tool is intended to aid the bank in various areas of its business, including investments, project monitoring, procurement, electronic contracting and supply chain.

The news comes days after Russian President Vladimir Putin mandated new rules for cryptocurrencies and ICOs, including use of the tech to create a “single payment space” for the Eurasian Economic Union countries.

According to Vnesheconombank chairman Sergey Gorkov, the blockchain tool will help in achieving “zero human factor impact” for transactions, helping them become more accurate, secure and transparent.

He further added:

“The system will be useful not only to the government, but also to business customers. The new mechanism will help businesses interact with their clients and suppliers, improve the document exchange quality, enable stronger data confidentiality and underpin the customers’ confidence in the product suppliers.”

The first phase of the project is expected to be carried out by the end of this year or by the start of 2018, the release adds.

Blockchain technology is attracting increased interest from Russian financial institutions and IT companies, among other industries. Government authorities in the country have recently started eyeing potential use cases of the nascent technology in areas of anti-corruption, anti-money laundering, risk management and others.

Last week, the Russian government announced plans to begin a blockchain-based land registry pilot test, by early 2018.

Sergey Gorkov image via Shutterstock