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World Cup to Bring Nearly 1 Million Jobs, $18Bln

Sports, Tourism and Youth Politics Minister Vitaly Mutko tosses a soccer ball into the air Maxim Stulov

The 2018 football World Cup will bring Russia nearly 1 million jobs, boost GDP by 527 billion, rubles ($18 billion) and attract an additional 95 billion rubles to tax coffers, Vedomosti reported Tuesday.

The figures from the Russia 2018 World Cup organizing committee are similar to those in a new report by Ernst & Young detailing expectations for Brazil, set to host the cup in 2014.

The Ernst & Young report projects that Brazil will take in 142.4 billion Brazilian reals ($78 billion) in investment from 2010 to 2014, with a direct boost to the economy of 64.5 billion reals, or 2.17 percent of Brazil's 2010 GDP. Additional income from taxes is expected to the tune of 18.13 billion reals.

The positive effect on Brazil's economy is expected to domino into other sectors connected to the tournament, raising both consumption and production of building materials, the retail sector, and business services while creating 3.63 million jobs, the report said.

But the exact benefit for Russia is hard to predict, and the construction of new infrastructure will play a large role in the outcome, Ernst & Young partner Olga Arkhangelskaya told Vedomosti.

"Building and reconstruction of airports and highways can yield serious effects. This is important to attracting business," she said.

Russia will need to spend 25 percent more on building stadiums and roads than Brazil — $10 billion before taking into account the construction of planned high-speed rail systems.

Preparation for the World Cup is just getting under way in Russia. The 12 cities that will host games for the tournament are expected to be revealed this fall.

In the past, countries that have hosted the cup have seen economic benefits. Germany's economy experienced a growth of 0.5 percent when it hosted the games in 2006, an analysis by financial services company Postbank showed, and UBS figures indicate South Africa had an increase in GDP growth from 0.5 to 2.2 percent during the run-up to the games hosted there in 2010.

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