Saransk's stadium for the 2018 World Cup is "supposed to raise the profile of this little-known Russian city," but for now regional Minister of Special Programs Alexei Merkushkin is "just trying to keep costs down," according to James Ellingworth of the AP. Constructing the arena is set to cost $300M, "fully funded by the federal budget," with a further $10.5M earlier spent on design costs. Turning a provincial city into an int'l destination "is not easy." Saransk normally sees "only one flight from Moscow per day and the airport needs expansion to cope with World Cup crowds." Following a year of int'l sanctions against Russia, the ruble is worth "more than a third less against the dollar" than it was in Jan. '14, while the "low oil price is squeezing the federal and regional budgets that fund the World Cup." The federal government has slashed spending by 10% "across the board." Merkushkin: "There's a tough position that more cost increases won't be allowed. So the cost that's been laid out, that's final." FIFA President Sepp Blatter said that Russian President Vladimir Putin has "promised the economic turbulence will not affect the World Cup." In the meantime, Russian organizers are "busy cutting costs." January saw Russian Sports Minister Vitaly Mutko promising 10% cuts to expenses "such as administration and preparations for the draw ceremonies." On Wednesday, he said 25 luxury hotels had been cut "over worries they could stand empty after the tournament," which helped to bring the total budget down to $12.2B, 4% lower than the figure used last year (AP, 4/12).
