Support The Moscow Times!

Moody’s Says FIFA World Cup Will Have Limited Economic Impact for Russia

Kirill Zykov / Moskva News Agency

The 2018 football World Cup will have little lasting impact on the Russian economy, Rating agency Moody's Investors Service said on Thursday.

Russia will host the world's biggest football tournament from June 14 to July 15 in 11 cities in the European part of the country, having spent billions of dollars on preparations.

"We see very limited economic impact at the national level given the limited duration of the World Cup and the very large size of the country's economy," Moody's said.

"While the extra boost in tourism will benefit Russia's already healthy external accounts, the added support will likely be short-lived."

Moody's finding is at variance with an assessment last month by former deputy prime minister Arkady Dvorkovich, who said Russia's economic growth was to a large extent being driven by investments generated by preparations for the World Cup.

Moody's said the food, hotel, telecoms and transport industries would see a temporary boost in revenue, but the overall credit impact for the Russian corporate sector would be limited.

Moscow airports would benefit "because upgraded facilities will support higher passenger flows, even after the event," Moody's said. "Construction companies are also among the key beneficiaries, but they would have already felt much of the impact."

But the sectors expected to benefit most from increased tourist flows "are not key growth drivers in most hosting local economies," Moody's said.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more