Bank warns of billions in losses
MOSCOW -- Russia's state development bank says it stands to lose billions of dollars from financing unprofitable construction projects for the 2014 Sochi Olympics.
VEB chairman Vladimir Dmitriev said in a recent interview with the Gazeta.ru news portal 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 Dmitriev 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.
The overall bill for the Winter Games stands at $51 billion, making them by far the most expensive Olympics in history.