A new Formula One team, Midland F1, will make its debut in 2006, a Russian-backed financial corporation announced on Friday.

The privately-owned Midland Group, registered in Guernsey but with extensive business links in Russia, said their cars would be built by Italian manufacturer Dallara.

"For a global-acting business conglomerate...Formula One is the perfect fit," Midland chairman Alex Shnaider was quoted as saying on the official Formula One website.

"It's global, it's competitive, it's tactical and it's high tech. Having a Formula One team is like getting an NBA or NHL franchise...it is one of the world's most popular sports," added the 36-year-old.

The team will be based outside London though Midland officials have yet to decide on what engines they would use or who would drive for them next year.

Despite teams such as Jaguar, Jordan and Minardi facing uncertain futures, Schnaider said the Midland Group were confident of meeting Formula One's enormous costs.

"We understand that basic survival in Formula One requires a budget of around $100 million per annum and we are prepared for that," he said.

Dallara was established in 1972 and entered Formula One with the Ford-powered Scuderia Italia team in 1988, staying until 1992.