The Russian Defense Ministry will auction part of the Moscow Region Kubinka military aerodrome in July for 212 million rubles ($8.6 million), a statement published on the ministry's website said.

A runway divides the aerodrome into two parts. One side contains an aircraft display center and the other side is being cleared ahead of the auction, a source from the defense ministry told Kommersant business daily.

The source said the decision was made around a year ago and that the runway will still be used by both private investors and servicemen.

Investment group Nafta Moskva, which owns Russia's luxurious Rublyovka real estate project, has been engaged in developing a private airport at the Kubinka airfield for more than 18 months.

On June 22, 2009, Russian Prime Minister Vladimir Putin signed a decree, excluding Kubinka airfield from a list of objects used jointly by military and civilian organizations. At the same time, a source from the defense ministry told Kommersant that "the airfield would be operated by the Russian Air Force and private investor would not be considered."

Later, a source close to Nafta-Moskva told Kommersant that the project of establishing a private airport based at Kubinka airport was underway. According to the source, investment in the project totals $20-30 million.

MOSCOW, June 29 (RIA Novosti)