Russia cuts World Cup spending amid economic crisis

Mon Jun 22, 2015 8:06am EDT
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By Katya Golubkova

MOSCOW (Reuters) - The Russian government ordered 30 billion rubles ($560 million) in cuts in spending on the 2018 World Cup on Monday but said the construction of stadiums would not be affected.

Russia has been forced to trim spending because of economic problems worsened by the collapse of global oil prices and economic sanctions imposed on Moscow over its role in the crisis in Ukraine.

A government decree said spending on the tournament would now be limited to 631.5 billion rubles ($11.8 billion) and Sports Minister Vitaly Mutko said most of the cuts would be in the number of hotels built.

"Of course it's a question of optimizing the preparations. We're primarily taking out the excess hotels," he was quoted as saying by R-Sport, which is part of RIA news agency.

Dmitry Efimov, a representative in Russia for soccer's governing body FIFA, later told R-Sport: "This is a reflection of the difficult economic situation but this should not have a negative effect on the event itself."

President Vladimir Putin says he is confident Russia will host the finals despite investigations into alleged corruption at FIFA and how Russia was awarded the 2018 finals.

"We won in a free fight and we are going to host the World Cup," he told Reuters and other international news agencies in the city of St Petersburg on Saturday.


Russian Sports Minister Vitaly Mutko attends a news conference in Samara, Russia, June 10, 2015. REUTERS/Maxim Zmeyev