Putin Guarantees Finances for Sochi 2014 Olympics

(ATR) As the government considers mounting a budget review, Russia's Prime Minister Vladimir Putin says the global economic crisis will not jeopardize funding for the Sochi 2014 Winter Olympics.

Putin told IOC officials meeting in the Black Sea resort for a project review over the weekend that the Russian government was committed to financing the Games venues and infrastructure.

"The financial difficulties we're seeing in the world today have had an impact on our country, but everything relating to the Olympic project is safeguarded by the budget, and its financing is guaranteed," Putin was quoted by Russian media.

His comments came in a week which started with Russian media reporting that the ruble's depreciation against the dollar and euro was impacting financing of the Olympic project. The week ended with Sochi 2014 announcing a $260 million partnership billed as the largest domestic sponsorship agreement for an Olympics.

Under the tier one deal, Russian telephone company Rostelecom and mobile carrier MegaFon will provide $260 million in cash and services and invest another $200 million in the development of the infrastructure of the Krasnodar region.

On Saturday, Putin met with Jean-Claude Killy, head of the IOC coordination commission for Sochi, to offer assurances that Olympic preparations were on schedule. It is estimated that half of the projected $12 billion budget will have been spent on the Olympic venture by the end of this year; about 40 percent of that figure is expected to come from private investment.

Dmitry Kozak, Russia's deputy prime minister in charge of the Olympics, met with Killy and his team. He is said to be reviewing the Games budget because of the financial turmoil. The ruble's recent devaluation could make construction more expensive due to the rise in costs of importing raw materials, although reports say Russian building materials are getting cheaper.

The IOC's Olympic Games Executive Director Gilbert Felli was also part of the IOC delegation visiting Sochi to check on Games preparations. It was their second annual inspection, coming just days before Sochi 2014 marks the five-year countdown to the opening ceremony on Feb. 7.

The IOC team also held discussions with other key Sochi 2014 leaders including Deputy Prime Minister Alexander Zhukov, Sochi 2014 President and CEO Dmitry Chernyshenko and Victor Kolodyazhny, head of Olympstroy, the state-controlled body in charge of the Olympics build.

The progress made on the governance structure for the 2014 Games, including collaboration with private investors and contractors, was a particular focus of attention.

During the visit, Sochi 2014 presented its environmental strategic construction plan. Power engineering and transport infrastructure will be modernized in the build up to the Olympics, while alternative energy sources and low emission transportation facilities will be used during the Games. Post-2014, these alternative energy sources would be integrated into Sochi's energy supply system.

Killy said the Sochi 2014 organizing committee had made good progress since the IOC coordination commission visit last year, noting that "a lot of exciting initiatives are now under way."

"I am happy to say that we feel that Sochi continues to be on track, although, as I’ve said before, there is no time to lose and Sochi 2014 and its partners must continue to work diligently and remain focused on delivering great Olympic Winter Games in 2014," he said.

Later this week, a Sochi 2014 delegation will visit Vancouver for a series of meetings with VANOC chiefs and 2010 Olympic stakeholders. They will mark the five-year milestone to the Sochi Olympics on Feb. 7 before taking part in one-year-to-go celebrations for the 2010 Olympics on Feb 12.

With reporting from Mark Bisson.