Amid worries that Russia is lagging in its Sochi Olympic preparations, Prime Minister Vladimir Putin on Saturday ousted the head of the state company responsible for Olympics construction and replaced him with Baltika's founder.

Putin said costs and other construction issues were behind the decision to replace Olimpstroi CEO Viktor Kolodyazhny with Taimuraz Bolloyev.

"When high-ranking officials do not assist in lowering prices but, on the contrary, demand price retentions and increases, that is totally unacceptable in today's circumstances," Putin said at a Olimpstroi meeting attended by Bolloyev and Kolodyazhny at his Novo-Oga-ryovo residence outside Moscow.

"Nothing of the kind will be allowed in the future. I ask you to pay attention to that," Putin said, according to a transcript posted on his web site.

Bolloyev, who joined Olimpstroi as vice president in January and owns a construction company, will be the third CEO at the company's helm since it was created shortly after Putin led Sochi's winning bid to host the 2014 Winter Games in 2007.

Deputy Prime Minister Dmitry Kozak, the top government official in charge of preparations for the Olympics, lauded Bolloyev at Saturday's meeting as a "top manager" who had been virtually running Olimpstroi for the past two months while Kolodyazhny was on vacation.

Kolodyazhny won similar praise from Kozak when he quit his post as Sochi's mayor to head Olimpstroi in April 2008. Kozak at the time called him "a highly professional manager." Kolodyazhny replaced Semyon Vainshtok, the former head of pipeline monopoly Transneft, who stepped down amid accusations of mismanagement and cost overruns.

Kolodyazhny, 55, asked to be relieved of his position for personal reasons, Kozak said at the meeting.

"This job involves a lot of strain and commitment, 24 hours a day," Kozak said, adding that Kolodyazhny had asked for a job that would allow him to stay in the city of Krasnodar, the capital of the region of the same name where Sochi is located.

Putin said not say which position Kolodyazhny might get. "Your work was not bad," Putin said. "I hope we will find a place where we can use your knowledge."

But Valery Suchkov, a member of Sochi's Public Chamber, said Kolodyazhny was a poor manager and his dismissal resulted from his incapability to run Olimpstroi effectively. "It was clear from the time he was appointed that he wouldn't stay in office very long," he said by telephone from Sochi on Sunday. "His level of professionalism was too low for such a position."

Putin offered profuse praise for Bolloyev, a 56-year-old native of North Ossetia who built Baltika into the biggest brewery in Eastern Europe and oversaw its sale to Denmark's Carlsberg before stepping down in 2004. Bolloyev is "a well-known and successful person in business who founded a Russian company that has become well-known beyond Russia's borders, Putin said.

Bolloyev acknowledged that a serious task lay ahead of him. "I believe that the construction decisions that were made earlier will be fulfilled on deadline," he said in brief remarks at the meeting.

Olimpstroi spokespeople could not be reached for comment Sunday.

After leaving Baltika, Bolloyev turned the Clothes Factory of St. Petersburg, into a leading domestic garment manufacturer. He also has investments in real estate, owning business centers in St. Petersburg and the Grantica construction and investment company, which has built homes in St. Petersburg's suburbs and Sochi, and is a senior official in the Russian Union of Industrialists and Entrepreneurs.

Much of the financing for the Sochi Olympic Games is supposed to come from outside investors, whom Bolloyev was tasked with attracting as Olimpstroi 's vice president. The global economic crisis has deterred private investors, but state-linked companies have stepped in to fill the gap. The federal government also has earmarked about $13 billion toward the games.

Last week, Deputy Prime Minister Alexander Zhukov said the government would not need to direct funds toward the Olympics in 2009 and 2010 because there was enough money from sponsors to cover expenses. "We got more money from them than had been expected," Zhukov said.

At Saturday's meeting, Putin criticized the Krasnodar regional administration for meddling in Olympics construction. He said Russian Railways had received a request from a deputy Krasnodar governor not to cut prices for activities related to the construction.

Kozak said the official, who was not identified, had already been fired.

Putin told Bolloyev not to let such incidents happen again. "If there were similar situations, they must be thoroughly investigated," Putin said. "Olimpstroi is not a private company but a project of public importance."