Sochi 2014 Won’t Need State Funds

The Russian government won’t finance the preparations for the 2014 Winter Olympics in Sochi this year and next because there is enough financial support from private investors, according to Deputy Prime Minister Alexander Zhukov.

Zhukov, the government official overseeing preparations in the Black Sea resort, said the funds raised by Sochi’s local organising committee have exceeded the government’s expectations.

‘Therefore, we have decided today that the organising committee will not receive subsidies from the federal budget in 2009-2010,’ he commented.

He said the move will save the government $88m over the next two years. Zhukov also said the organizing committee has a $130m budget surplus, but pledged that Russia would resume state financing in 2011.

The global financial crisis has raised concerns about Russia’s ability to pay for the Games, with most facilities being built from scratch.

The government conservatively estimated last year that the 200 construction projects for the 2014 Olympics would cost $12bn.

The state was set to put up $7.5bn, with the rest coming from the private sector. With the ruble losing 20% against the dollar since September, the total bill has been reduced to $9.2bn.