Russia’s economy will be supported by large-scale investment from the construction market, due to the nations hosting of the 2018 FIFA World Cup, with the construction of stadiums, transport infrastructures and accommodation.
Timetric expects high levels of private investment due to the new easier way of obtaining construction permits. Foreign investment is also anticipated due to the nation’s accession to the World trade Organization (WTO).
Since early 2000s Russia’s infrastructure has struggled due to underinvestment and lack of government support.
Widespread corruption and excessive bureaucracy have stopped foreign companies establishing construction projects in Russia. However from 2008-2012 infrastructure construction projects were implementing under public-private partnership (PPP) laws.
According to ratings agency Standard and Poor’s (S&P), Russia has a lack of metro lines, roads, airports and utilities in most cities. Russian local governments assess the cost of the 2018 World Cup at around US$43 billion.
The federal government estimates the figure to be half that value. Michel Platini (UEFA president) visited Winter Olympics Games 2014 venues in construction, saying: “Honestly speaking, it would have been much more interesting to see the stadiums being built for the World Cup, in any case, I can state that the work is going ahead.”
