“Bloomberg”: “Putin Wins Grand Prix for Sochi as Ecclestone Agrees to Formula One Accord”
Formula One chief Bernie Ecclestone plans to sign an agreement today for Russia to host a Grand Prix from 2014 to 2020, in a ceremony that may be attended by Prime Minister Vladimir Putin.
The talks on the proposed contract were held at the Black Sea resort of Sochi yesterday, the government's press service said. Russia plans to build a racetrack in Sochi, host city of the 2014 Winter Olympics, according to the proposed contract, which allows the arrangement to be extended for five years.
Ecclestone said in April that he aimed to bring the motor- racing series to Russia by 2012. Formula One currently has 19 races, with more countries vying for a spot on the series. Staging a Grand Prix puts race hosts "on the map," Ecclestone said in a Bloomberg TV interview in March.
Putin is trying to polish Russia's image and boost its prestige abroad by attracting major sporting events such as the Olympics and Formula One. He has also spearheaded a bid to host the 2018 soccer World Cup.
Putin agreed to sponsor Formula One's first Russian driver, Vitaly Petrov, who drives for the Renault SA team. In a March 1 meeting with Renault Chief Executive Officer Carlos Ghosn, Putin said the French carmaker's "symbolic step" in hiring a Russian driver would stimulate its cooperation with Russian companies.
Renault owns a 25 percent stake in OAO AvtoVAZ, Russia's largest carmaker. Christian Esteve, head of Renault's Avtoframos factory in Moscow, said on Aug. 25 that Russia is a priority market for the carmaker. Renault, Nissan and AvtoVAZ plan to control 40 percent of the Russian market by 2015, he said.
Yearly Fee
Ecclestone told Kommersant last week that Russia will pay a yearly fee of about $40 million for the right to hold a Grand Prix race. Building a racetrack may cost Russia as much as $200 million, the Moscow-based newspaper said.
Construction of facilities for the 2014 Olympics should cost 185 billion rubles ($6.1 billion), according to Deputy Prime Minister Dmitry Kozak's office. Forty percent of construction for the games will be completed on schedule this year, RIA Novosti reported yesterday, citing Taimuraz Bolloyev, head of Olimpstroi, the state corporation in charge of preparations.
Ilya Arkhipov
