Rating Agency Cautious Over Sochi’s Legacy
SOCHI, Russia (AP) — A major international ratings agency expects the local government in Sochi, Russia, to struggle with the cost of maintaining the Olympic venues despite the massive state investment.
Moody's says in a report published today that Sochi and the Krasnodar region have benefited from the government funding but are likely to be tight for money in the longer term.
The agency says the regions will be struggling under the weight of the cost of maintaining the venues after the games are over. There's also uncertainty whether the investment will boost tourism revenues enough.
On Sunday, Russian Prime Minister Dmitry Medvedev ordered the government to come up with a plan for post-Olympic use of the venues. Some of them will be turned into shopping malls and convention centers.