According to the newspaper Izvetia, the Russian government is investigating the preparations for the country’s inaugural Grand Prix, which is scheduled to take place in Sochi in October 2014. The report suggests that Deputy Prime Minister Dmitry Kozak has asked Igor Slyunyayev, the Minister of Regional Development, to set up a commission to urgently assess the situation, with regard to the money being spent and the quality of the construction work. Kozak ordered that the commission include representatives of the Russian Automobile Federation, Formula One Management, the contractor and the Krasnodar regional government. Kozak wants a report delivered by May 15.
The newspaper says that the commission is being created because of revised estimates into the costs involved, which have gone from the planned $250 million to $380 million. It also said that circuit designer Hermann Tilke has sent a report to the construction company Omega, a wholly-owned subsidiary of the Krasnodar region, about the quality of the work that has been done. Izvestia says it has the document ordering the establishment of the commission, but cannot get anyone to confirm that there are problems.
joeblogsf1 
As I mentioned in the Sochi post, between infrastructure, funding, and security neither the winter games nor the subsequent F1 race seem like a good idea.
LOL
Somebody overdid it with the sealed envelope payments? Or what need was there for political sacrifices to lose someone?
one thing that is discussed on Russian sites – when or right before Omega became a promoter, it (Omega) was completely purchased by the regional government. So, it is state that is promoter now.
All ‘private’ companies that supported project initially (Megafon, Lukoil etc) withdrawn their support long time ago and it is only Omega that provides funds. The construction works are arranged via some Cyprus registered companies that are owned by a close friend of… Mr. Putin.
There is nothing strange from ‘Russian’ point of view. Whole thing is a huge variant of stuffing pockets with budget money. the only reason for any investigation in such cases – some one got an access to money who wasn’t supposed to. The thing that Western people struggle to realise – many things in Russia are created just to put budget money in private pockets of ‘chosen ones’. With no real consequences even when they are caught (if you can you should read about Russian Olympic Committee budget for Winter Olympic Games in Vancouver)
incredibly sad that such a great nation continues to be treated in this manner – Animal Farm and all that. It sounds like these people (but not the Russian people) can well afford to subsidise the bailout of the Cyprus economy via losing some of these ‘surplus funds’
and one more thing.
Same guy (Dmitry Kozak) gave an order in the beginning of April 2013 to Russian Ministry of Finances to give a credit of 8.74bil roubles to Krasnodar government especially for Sochi GP. In order to make sure that all construction and preparation are finished as planned.
And this amount alone is more than initial (declared) costs of the whole project.
they are just pushing money around to make sure they have enough in their pockets…
I have had it confirmed to me by a source at FOM that the race is 100% not going to happen in 2014. All parties are trying to extricate themselves from the current contracts and it is going to be a messy process.
Bernie is not going to walk away from a contract like that. There will be a solution, but my money is not on Sochi being the venue. Pride is involved here and the only logical solution is a street race somewhere else. My money is on St Petersburg. It is Putin’s town. It is picturesque, its a good brand to be associated with F1 and it is close to the Finnish border, so there is a ready-made audience… which understands F1 and likes vodka.
Holy Jesus, St. Petersburg? Count me in, it’s only about 300 km from where I live (in Finland). Dare I drive in Russia…?
Another very good reason to have St. Petersburg isn’t it!
In 2001, Putin authorised the construction of a circuit at Pulkovo Airport on the outskirts of St. Petersburg. It never happened, and two years later, Bernie was in Moscow talking up the ill-fated Nagatino Island project. A race at Pulkovo would probably be impossible today, seeing as how it is one of the busiest airports in Europe.
So if a street circuit in St, Petersburg is in order, let me be the first to suggest this:
http://www.gmap-pedometer.com/?r=5903971
And yes, this entire post has been something of an excuse – if I needed one – to design a circuit in the Google Maps Pedometer.
So will it be delayed until 2015? Getting everything in place for a street circuit for 2014 would appear to be a bit of a tall order.
Yes, correct. As I mentioned, the race WILL be cancelled for 2014 in Sochi, hence they are getting out of their contracts. I too understand that something will be done to save face and have in fact been told to watch out for St Petersburg. Of course this will require new contracts and arrangements. The management seem quite open about it all.
It will happen and besides I am sure it’s November 2014 or maybe I am thinking of Thailand and they were fearing for some races that weren’t going to happen and it actually arrived on time. They are on schedule or beyond schedule. It is going to happen
Did somebody tell these guys?
The good news is Kubica’s already in training for this track!
We’re going to spend a hundredfold of the initially planned budget but will most likely organize a decent event, as it usually happens with events that happen to influence Russia’s image – that’s what I think. 2014 might’ve not been the wisest choice, but aside from that I wouldn’t worry much. I’m more worried about attendance which is probably not going to produce stellar numbers. Sochi is a bit too far from most of the people interested in car racing over here, plus the tickets are most likely going to cost a fortune unless they pull another Moscow Raceway style thing.
In Russia (Ukraine, etc.) we call it “otkat” or “undertow” being literally translated. That’s one of reasons why it’s almost impossible to do honest business here. And why good talented people rush in western direction.
The word you are looking for is ‘kickback.’
Finally, a grand prix to make Yeongam, Turkey and Bahrain seem like perfectly reasonable places to hold a sporting entertainment event!
totally unrelated to this: mclaren’s sponsor GSK is looking to divest lucozade. thoughts on what this means for the ronteam?
http://www.investegate.co.uk/glaxosmithkline-plc–gsk-/rns/1st-quarter-results/201304241200021081D/
I would say it changes the badge on the McLaren drinks bottles most likely 🙂
What will Jenson drink now when he’s feeling poorly?
There was old Soviet joke that there is no difference between top newspapers Pravda (Truth) and Izvestia (News) – there is no truth in Izvestia and no news in Pravda.
Just saying.
We will see…