Sochi Binge Undermines Putin Outrage Over Rating: Russia Credit

The cost of hosting the Sochi Winter Olympics calls into question Russian President Vladimir Putin’s description of his country’s credit rating as an “outrage.”

While Russia’s total sovereign debt is the second-lowest of 50 countries tracked by Bloomberg, the Olympic cost overruns highlight one of the country’s biggest financial weaknesses -- the lack of independent government institutions that can curb corruption and keep spending in check, according to Moody’s Investors Service and RAM Capital SA. Russia is spending 1.53 trillion rubles ($43 billion) on infrastructure and the games to host the 22nd Winter Olympics, now in their second week, compared with an original budget of $12 billion.