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. Last Updated: 07/27/2016

Open Auctions Planned for Oct. 26

Moscow City Hall will hold its first open auction for contracts to build residential property on Oct. 26, Deputy Mayor Valery Shantsev said Friday.

The city will award contracts for 5 million square meters of residential space by 2010, Shantsev's spokesman Yevgeny Muravyov said.

The city's priority is to phase out drab and crumbling five-story apartment buildings, named khrushchyovki after Soviet leader Nikita Khrushchev, during whose reign they went up.

For the past year, residential real estate investors have been chosen by a special "contest commission," which accepted bids in sealed envelopes and picked the highest tendered offer.

Muravyov said the city soon found it was losing money that way. "Large investors who could afford to raise their bids couldn't do so" under the sealed-bid system. Open auctions are seen by many economists as the best way to sell off state property at true market value.