Russia’s 2014 Olympic Investments Reach $7.5 Billion, Kozak Says

Russia has allocated $7.5 billion to build its 2014 Winter Olympic complex, about a third of the total investment in the site and surrounding region, according to Deputy Prime Minister Dmitry Kozak.

The government is providing just under 92 billion rubles ($2.9 billion), while private investors are spending about 150 billion rubles, Kozak said by e-mail in response to questions. The Olympics in the Black Sea resort of Sochi and other large infrastructure project will bolster the economy, he said.

“The economic legacy of these projects will primarily remove infrastructure burdens and help economic development,” Kozak said yesterday. “As regards Sochi specifically, we’re talking about boosting transport, engineering and energy infrastructure by several times.”

President Vladimir Putin has sought to attract large international events, which also include the soccer World Cup and this week’s Asia-Pacific Economic Cooperation summit. Russia has spent about 660 billion rubles on preparations for the APEC forum in Vladivostok and will invest 300 billion rubles in the World Cup in 2018.

The government has plans to ensure the Sochi infrastructure will continue to be used after the Games, with the stadium built for the Olympic opening ceremony earmarked for training Russian soccer teams and hosting World Cup matches, Kozak said.

Private investment in the Sochi region through 2025 may be maintained at about the same level after the Games as for the Olympics, according to the deputy premier.

To contact the reporter on this story: Ilya Arkhipov in Moscow at iarkhipov@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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