Minister of Industry, Trade and Labor Benjamin Ben-Eliezer and Rusnano CEO Anatoly Chubais announced the venture at the 12th Saint Petersburg International Economic Forum.
The parties are considering a $200 million fund, with each side contributing $100 million.
Rusnano executives previously raised the issue in talks with President Shimon Peres and Prime Minister Benjamin Netanyahu. The Russian government set up Rusnano in 2007 in an effort to diversify the country's technology. With $5 billion in capital, it functions as a kind of venture capital fund, investing in Russian and foreign companies in the field.
The Ministry Industry, Trade and Labor described the Saint Petersburg International Economic Forum as a "kind of Russian Davos". This is the first time that Israel is attending the forum.