Putin announced during a Cabinet meting that the money is being allocated as part of a financial bailout plan in light of the troubled global economy, RIA Novosti reported.

"Up to $50 billion is being earmarked to refinance borrowings made by Russian companies abroad," Putin said.

The state-run VEB bank will serve as a broker for the financial transactions

Putin also said the government was taking steps toward offering Russian banks subordinated loans for as much as $36 billion for 10 years, RIA Novosti reported.

"These funds will be used to increase banks' capitalization and to solve liquidity problems," the prime minister said.