The authorities have paid upfront half the cost of stadiums for the world Cup

The government has paid in advance 50% of the funds allocated for the construction of stadiums for the world football championship 2018. As explained by Minister of sport Vitaly Mutko, this step is necessary in order to avoid bankruptcies of contractors and to mitigate for them the consequences of the devaluation of the ruble, according to “Vedomosti”.

Just the cost of preparations for the world Cup amount to 620 billion roubles, Of which 320 billion rubles provided from the Federal budget. “The construction and reconstruction of sports facilities” allocated 175 billion rubles (122,5 billion from the budget). Thus, “Vedomosti”, the speech can go about allocation to contractors approximately 60 billion rubles in advance. Mutko noted that builders have “all received”. Developers also removed the obligation to provide a Bank guarantee,

The representative of the Secretariat first Deputy Prime Minister Igor Shuvalov confirmed the payment of 50% advance payment. According to him, this obligation is spelled out in the law on preparation and holding in Russia of world football championship. He explained that such a measure is necessary in order to avoid delays in construction. If funds are available, developers can sign long-term contracts for the supply of building materials.

The Federal government official told “Vedomosti” that the lack of money and the difficulty of obtaining advances forced the contractors who built the Olympic facilities in Sochi, to borrow. This has caused the bankruptcies of many of them, explained the source. On the construction of facilities for the 2014 Games went bankrupt developers such as NGOs “Mostovik” and “Corporation “Inzhtransstroy”. Many other contractors have suffered substantial losses.

Interviewed by “Vedomosti” company called advance payment and the withdrawal of obligations on granting of a Bank guarantee substantial support. This was stated by Mikhail Khryapov, Director General of Stroytransgaz, which is building the stadiums in Nizhny Novgorod and Volgograd, as well as the President of Crocus Group Aras Agalarov (the company is constructing the stadiums in Kaliningrad and Rostov-on-don).

In December last year analysts at Swiss Appraisal has estimated that the cost of Russia to hold the world championship on football is ten times higher than the income from it.