Support The Moscow Times!

State Bank to Lose on Olympics

Russia's state development bank says it stands to lose billions of dollars from financing unprofitable construction projects for the 2014 Sochi Olympics.

VEB CEO Vladimir Dmitriyev said in a recent interview with Gazeta.ru that of the 19 projects the bank is funding, at least eight would fail to turn a profit. The eight projects are receiving about $5.2 billion, and Dmitriyev expressed doubts the money will be repaid.

Among those receiving the credits are companies owned by metals tycoons Vladimir Potanin and Oleg Deripaska, and also state-owned Sberbank and Gazprom. All four have asked the government for help in covering some of their losses.

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.