The construction of the 612-meter pyramid-like tower, with a total area of 470 square meters (5,000 square feet), is due to be completed by 2012. The tower is set to become Europe's highest building.
The Russia Tower, located in Moscow City, the Russian capital's new business center, will contain shopping centers, offices, hotels and apartments.
"This building will be unique in both size and architecture," Luzhkov said, adding that it will become "a symbol of Russia."
"We will not stop here," added Luzhkov. "We are, essentially, in the process of constructing a new city."
The tower was designed by the British architect Norman Foster.