Official says Russia’s budget won’t fund preparations for 2014 Sochi Olympics in 2009-2010

Russia: No government money for Sochi in 2009-10

MOSCOW — 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, Deputy Prime Minister Alexander Zhukov said Tuesday.

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

“Therefore, we have decided today that the organizing committee will not receive subsidies from the federal budget in 2009-2010,” he said in televised comments.

He said the move will save the government $88 million over the next two years.

Zhukov also said the organizing committee has a $130 million budget surplus, but pledged that Russia would resume state financing in 2011.

The global financial crisis has raised concern 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 $12 billion. The state was set to put up $7.5 billion, with the rest coming from the private sector. With the ruble losing 20 percent against the dollar since September, the total bill has been reduced to $9.2 billion.

The Sochi Olympics have the personal backing of Prime Minister Vladimir Putin, who presented the bid to the International Olympic Committee in 2007 when he was Russian president.

Putin assured the IOC in January that Russia’s economic troubles would not jeopardize state funding for the games.