Russia cuts 2014 Olympics budget

Russia has cut its budget for hosting the 2014 Winter Olympics in the Black Sea resort of Sochi by 15%, Deputy Prime Minister Dmitry Kozak has said.

• Mr Kozak said an assessment of construction projects found it would be possible to save about $8.3bn (£5.8bn), according to the Interfax news agency.
• Russia has been hit hard by the global financial and economic crises after years of soaring economic growth.
• The 2009 budget is expected to show its first deficit in about a decade.
• In November, Mr Kozak announced that the state would seek savings on all major construction projects in which it was involved.
• A Russian media report on Tuesday said preparations for the Olympics had also been affected by a lack of interest from firms in bidding for projects, forcing the local authorities to extend tender deadlines.
• They also faced mounting difficulty in acquiring land necessary for Olympic infrastructure because owners were refusing to sell at prices offered by the government, the Prime-TASS news agency said.
• The Austrian city of Salzburg, which lost out to Sochi for the right to host the games, said in November that it was still prepared to do so if Russia was unable to complete its construction projects in time.