Russia‟s winning bid may help the country‟s main stock indexes to outperform other emerging markets by as much as 10 percent over the next three months, VTB Capital analysts wrote in a financial report.
The share prices of Russian steelmakers rose after the announcement on anticipation of increased demand from the World Cup building boom. OAO Severstal, Russia‟s largest steelmaker and OAO Novolipetsk Steel both rose significantly. Abramovich is a shareholder in steelmaker Evraz Group SA, which also increased sharply. Forbes magazine estimates his wealth at US$11.2 bn, making him Russia‟s fourth-richest man. The total expenditure on Russia‟s World Cup preparations may exceed US$50 bn, the Vedomosti newspaper reported citing Marina Udachina, head of the Institute for Innovation, Infrastructure and Investment. In addition to stadium construction, Russia pledged about US$11 bn of investment in tourism infrastructure, primarily to increase the number of three-star hotels and budget accommodation, according to materials on FIFA‟s website. Russia will have to build 7,711 kilometers (4,791 miles) of roads and lay 2,024 kilometers of rail track by 2018 at a cost of about US$35 bn, Udachina told Vedomosti, based on FIFA‟s report. Russia has committed to make “major upgrades and capacity increases” at most airports serving the host cities. FIFA assessed Russia‟s ability to provide requisite airports and international connections as a “high risk.” “Even with planned renovations, some airport capacities would still not meet requirements,” FIFA concluded. “The required temporary facilities were proposed, but without guarantees.” Russian Finance Minister Alexei Kudrin said that expenditures on the World Cup would be “significantly less” than on the 2014 Winter Olympics, according to the ministry‟s website. “We have a lot do to -- stadiums, airports, roads,” Putin said. “But this presents us with a challenge, and this is the advantage of our bid. It means the development of world football, but also the development of roads and transportation infrastructure for our country.”
Russian Prime Minister Vladimir Putin wants Roman Abramovich, owner of English Premier League club Chelsea and a supporter of the Russian World Cup 2018 bid, to help finance stadium construction for the tournament. According to press comments: Putin said in Zurich: “I don‟t rule out that Mr. Abramovich may take part in one of these projects,” Putin told reporters in Zurich last night in televised comments. “Let him dip into his pocket a bit. It‟s no big deal; he won‟t feel the pinch. He has plenty of money.” Putin said Russia will spend 300bn rubles (US$9.6bn) to build 13 stadiums and to renovate three more in 13 host cities, including Sochi, home of the 2014 Winter Olympics. OAO Lukoil, Russia‟s second-largest oil producer, plans to build a stadium in Moscow, and another will be constructed with financial support from state-run lender VTB Group, he said. Abramovich is ready to contribute toward financing construction for the tournament “in partnership with the state,” RIA Novosti reported, citing his spokesperson, John Mann.