The MF1 Racing team will race under Russian licence in the 2006 Formula One Championship after acquiring the official licence from the Russian Automobile Federation.
FIA rules state that in order to participate in the Championship, a team must make an entry application with a licence issued by a national motorsports authority attached to it.
Midland owner Alex Shnaider collected the licence on Thursday from RAF president Victor Kiryanov.
"As a Russian-born person, I am extremely pleased that the team founded by Midland Group will compete in the Formula One World Championship with a Russian identity," said Shnaider.
"It has always been Midland's intention to enter F1 with a Russian license - an association which reflects this project's core targets and values - and I am very grateful to the RAF and Victor Kiryanov, President of the Federation, for their support.
"I believe that Midland Group's decision to enter its team under the Russian flag will push forward the development of Russia's motorsport and open new horizons for Russian racing drivers at the international level.
"MF1 Racing will make every effort toward achieving this goal and welcomes collaboration with the Russian authorities and Russian businesses in this challenging and extremely important undertaking."
MF1 Racing will thus become the first team to compete under the Russian flag in Formula One.
Formula One supremo Bernie Ecclestone welcomed the team.
"I am very happy that we now have in Formula One a team with a Russian license," he said. "I am sure the MF1 Racing team will create interest not only in Russia but also worldwide. I wish Alex Shnaider and the team the best of luck and the support of a great nation."