Russia "vowed to pay for what became the most expensive Olympics of all time by getting super-rich private investors to take the cost from the state," according to Nataliya Vasilyeva of the AP. Instead, as the first anniversary of those Games approaches, "at least two of those oligarchs are quietly dumping their increasingly toxic assets on the state -- forcing Russian taxpayers to pick up the bill." For the oligarchs, it is "a way to recoup billions of dollars as they struggle in an economy battered by plunging oil prices and Western sanctions." For Putin's critics, it is "evidence of the crony capitalism that shields Russia's rich and powerful businessmen from economic pain." A spokesperson to Russia's deputy PM said that two key investors "have unloaded properties built for the Olympics" at a combined cost of $3B. The issue "is a major headache for Putin, who needs to pay off the oligarchs to keep them happy, while preventing the murky deals from triggering a wave of popular unrest." The risks for Putin "are magnified as the country enters recession and its rainy-day funds dwindle, even as Russia prepares for staging yet another major international sports event: the 2018 World Cup." In addition, "other oligarchs may now be waiting for the right moment to demand their reward or compensation for coming to the government's rescue by taking on what became unprofitable Sochi projects." King's College London Dir of King's Russia Institute Sam Greene said of the Kremlin, "They don't have any good options here. They either have to take the public hit, or they have to take the opposition of the oligarchs." Meanwhile, residents of Sochi -- long a resort destination for Russian vacationers -- "have seen few economic benefits from hosting the Olympics." Promises that the games would solve perennial problems such as poor transportation and electricity "remain unfulfilled one year afterward" (AP, 2/5).
