Russia had 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. Instead, as the first anniversary of the games approaches, at least two of those oligarchs are quietly dumping their toxic assets on the state – forcing taxpayers to pick up the bill.
For the oligarchs, it’s 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’s evidence of the crony capitalism that shields powerful businessmen from economic pain.
Two key investors have unloaded properties built for the Olympics at a combined cost of $3 billion, a spokesman to Russia’s deputy prime minister confirmed to The Associated Press. The issue is a major headache for Putin, who needs to pay off the oligarchs to keep them happy, while preventing the deals from triggering popular unrest.
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(AP) Oligarchs unload Sochi Olympics assets back onto Russian State to recoup investment
Russia had 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. Instead, as the first anniversary of the games approaches, at least two of those oligarchs are quietly dumping their toxic assets on the state – forcing taxpayers to pick up the bill.
For the oligarchs, it’s 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’s evidence of the crony capitalism that shields powerful businessmen from economic pain.
Two key investors have unloaded properties built for the Olympics at a combined cost of $3 billion, a spokesman to Russia’s deputy prime minister confirmed to The Associated Press. The issue is a major headache for Putin, who needs to pay off the oligarchs to keep them happy, while preventing the deals from triggering popular unrest.
Read it all.