With Russia mired in its worst financial crisis in a decade, the Kremlin is throwing boom-time profits at its problems. But as the coffers empty out, concerns are mounting for the government’s pet project – the Winter Olympics in Sochi just six years from now.
Recent tenders for key Olympic facilities have failed for lack of interest. The country’s debt-laden construction industry is putting projects on hold. And, wealthy Russians brought on board to spearhead flagship developments are showing signs of financial pain.
All this as the price of oil – the backbone of Russia’s economy – is heading down. Since peaking in July, oil prices have more than halved to hover around $60, dipping below the critical $70 level at which the government balances its budget.
Few in the Olympic movement doubt that the Kremlin has the commitment and the will to see the 2014 Games go on – at any cost. But the cost looks increasingly steep.
Vladimir Putin, when he was president, traveled to Guatemala last year to personally lobby International Olympic Committee members. There he delivered his first address in English – a sign of just how important these games are to Russia.
source: usatoday.com
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