By Alexander Seltzer, Intern, The PBN Company, London

Despite concerns relating to the global financial downturn, it looks like the Sochi 2014 Olympic Winter Games is one organization that will not be seeking a bailout this year.

Russia’s Deputy Prime Minister Alexander Zhukov announced on June 2 that funds raised by Sochi’s local organizing committee have exceeded government expectations.  Private investors and foreign firms, such as Italian developer Todini Costruzioni Generali, are eager to invest in the Olympic project and have all but replaced the need for government subsidies this year.

“We have decided today that the organizing committee will not receive subsidies from the federal budget in 2009-2010,” Zhukov said in televised comments.

This is purported to save the government $88 million over the next two years, according to Zhukov. More good news followed with Zhukov also reporting that the organizing committee has a $130 million budget surplus, although he said the government would resume state financing of the Olympic project in 2011.

Read more »