Russia to curb spending ahead of 2014 Games
MOSCOW (Reuters) - Russia plans to seek savings on preparations for the 2014 Winter Olympics because of the global economic downturn, the deputy prime minister who is in charge of preparations for the Games said on Friday.
"Not one of the venues from the program is being taken out but we have set a target of saving some money," Dmitry Kozak told reporters in Moscow.
He did not say how much Russia wanted to save but said that the government expected the economic downturn would in any case push down prices for construction materials.
The process of seeking cost cuts would apply to all big construction projections in which the state was involved not just the Olympics, he added.
Russia has pledged to spend $12 billion on developing the Black Sea resort of Sochi for the Games, of which $7 billion will be public funding and the rest from private sources.
Much of the infrastructure for the Olympics will have to be built from scratch.
"I want to say completely honestly to you, and for me this was an unexpected surprise, I spoke to all of the investors -- there are of course difficulties with getting loans but none of the investors are pulling out," Kozak said.
"They have all confirmed that they are ready to carry out their commitments," he said.
Kozak said Russia was sticking to its timetable for construction ahead of the Games.
He had requested proposals from organizations that are building venues and other infrastructure on where costs could be cut and some had already submitted documents.
The International Olympic Committee awarded Sochi the Games last year, selecting it ahead of Salzburg in Austria and South Korea's Pyeongchang. Russia has never staged the Winter Games and last hosted the Summer Games in Moscow in 1980.
Russia is trying to prevent its economy from stalling after the global credit crisis undermined confidence and pushed down prices for its main exports: oil, gas and other natural resources.
The crisis has cut more than 70 percent from the value of Russian markets since May and hammered the rouble.
(Reporting by Christian Lowe, writing by Guy Faulconbridge, editing by Keith Weir)
