The Moscow Oil Plant will be relocated so that a transport hub can be built in its place in the north of the city.
Prime Minister Dmitry Medvedev authorized the handover of the oil plant, located on Prospekt Mira, to the Moscow government, Interfax reported Wednesday.
The decision means that the facility, established in 1925, has been dropped from the list of state enterprises slated for privatization in 2014-16.
Moscow authorities believe that the new Yaroslavsky hub will improve traffic flow and the ecological situation in the city.
The plant's turnover was 355 million rubles ($10 million) last year, with a profit of 8 million rubles being posted, the report said.