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. Last Updated: 07/27/2016

City to Streamline Its Portfolio

Moscow is looking to cut losses stemming from investments the city has made in underperforming companies.

In their weekly City Hall meeting, Moscow officials tentatively approved a plan for slashing investment in losing outfits and expanding their share of moneymaking ventures.

They also called for an annual evaluation of city investments. "First, we have to evaluate the effectiveness of a company, and then we have to decide whether to leave it to the private sector or grow the city's stake in it," said Vladimir Silkin, head of the city government's Property Department.

All companies in which the city has at least a 25 percent stake would be evaluated, according to the plan. If the share exceeds 50 percent, then the company's market value should also be investigated, the document states.

But it was Mayor Yury Luzhkov's black eye that attracted the most interest from Moscow officials and reporters at the meeting.

Entering the big meeting hall after everyone else, the mayor appeared to be in a sour mood. "I want to tell you now, so there are no further questions about how I look," the mayor said before the meeting formally began. "It is downhill skiing that is responsible for my appearance."

It was not the first time Luzhkov had been left visibly injured in recent years. Two years ago, the mayor was hurt when his head was struck by fireworks.

Turning to the issue of city investments, Luzhkov praised the plan officials have adopted for evaluating companies. The six-page plan, he was reported to have said, "can serve as a basis" for improving the city's portfolio.

According to the plan, the city had nearly $3.4 billion invested in various companies as of October. The plan also calls for educating city officials in investment management. And it would establish a database by March 2008 that includes information about these firms.

Also Tuesday, city officials approved spending $227 million on trees, shrubbery and other greenery.