Nizhny Novgorod city administration has announced plans to spend $41.3m in 2009 on equipment in public hospitals and clinics.

Announcing the move, city healthcare chief Vladimir Lazarev said the equipment would be installed in 2009 after being bought on interest free or low interest credit.

The equipment would be paid for by 2013, Mr Lazarev added.

Nizhny Novgorod's state hospitals and clinics are, like in most Russian cities, under-funded and with largely poor conditions, so the move has been met with optimistic caution.

Almost all of Russia's emerging middle classes use private medical services.