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. Last Updated: 07/27/2016

Luzhkov to Tap New Fund for City Projects

Moscow Mayor Yury Luzhkov said Tuesday he planned to tap into the new state investment fund, which was provisionally approved by the government last week to help pay for major infrastructure projects.

Moscow's City Hall will lobby for its share of the annual fund, which will make available 70 billion rubles ($2.4 billion) in 2006, Luzhkov said Tuesday, Interfax reported.

The fund -- made up of surplus oil revenues and interest savings following early debt repayment -- is to be used to provide state support for large projects aimed at developing infrastructure or promoting innovation, news agencies reported.

"Moscow may propose to the Russian government such major projects as the City-2 development and the new Olympic Village at Silikatnaya Ulitsa," said the mayor, Interfax reported. City-2 is a proposed $100 billion regeneration project in the northwest of the city. Moscow hopes to build the Olympic Village despite losing its bid to host the 2012 Olympic Games.

Luzhkov said the proposed 2006 budget could mark a transition from "an era of financial stabilization to the development of the country's economy."

Currently, surplus oil revenues are channeled into the government's stabilization fund, which is used for early debt repayment.