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. Last Updated: 07/27/2016

Germans Buy Into Moscow Properties

German firms have bought stakes in three state-owned properties in the Moscow region, promising to invest millions of dollars to upgrade their production, Interfax reported Tuesday.

The Moscow Region Property Fund announced the names of investors who had bought shares in two food distribution warehouses and an insulation plant by means of investment tenders completed in June and July, the agency reported.

The firm Zelstoff und Papier bought 30 percent of the Zhukovsky refrigeration company, paying only 96, 600 rubles and 3, 100 privatization vouchers but promising to invest $3. 03 million to develop the firm's food storage and distribution business.

Treuhand Osteuropa, a German aid agency working in the Moscow region partly funded the sale, placing advertisements for the firm in major international newspapers.

In another deal, Ceziwid Elektrowarme GmbH bought 30 percent of a similar firm in Podolsk for 35, 100 vouchers but promised to invest $1. 2 million, Interfax said.

The Sound and Thermal Insulation Factory in the city of Krasnogorsk sold 35 percent of its registered capital for 251 million rubles and 16, 600 privatization checks. The winner of the competition, Knauf Verwaltungsgesellschaft will invest 7. 5 million marks ($4. 5 million), Interfax said.

The deputy chairman of the Moscow Region Property Fund said that shares in three other firms will be sold through investment tenders during the autumn and shares of about 50 such companies will be sold by the end of the year.

The announcement shows the growing importance of investment tenders as a way of attracting foreign investment into Russia's privatization program.