By Paul Nicholson
December 17 – Russia has swiftly dismissed any discussion that the crashing value of the Ruble could in turn lead to a withdrawal from hosting the 2018 FIFA World Cup on economic grounds.
Russia’s ruble exchange rate slumped to a record low of 75 rubles to the dollar yesterday.
The total World Cup budget of 664.1 billion rubles announced in 2012 converted to $20.5 billion on exchange rates then. On the current exchange rate the figure drops to $9.1 billion
Speaking to journalists, Nikolay Tolstykh, the president of the Russian Football Union (RFU), said: “The issue of Russia’s refusing to host the World Cup is out of the question.”
For non-Russian contractors looking to cash in on the Russian World Cup infrastructure investment, the impact of exchange rates is making the market look less interesting if they want to make earnings out the country. Though fans looking to travel to Russia will be hoping exchange rates stay low for another three years.
The impact for FIFA would be significant but not disastrous if the exchange rates stay low – broadcast and sponsorship deals are negotiated in dollars and are a global sale, similarly international ticket prices would likely be held at comparative western ticket rates, though probably with some concessions to local buyers to reflect the local situation.
Russia has said that it is preparing for the influx of 3 million visitors during the World Cup.
Russia has steadfastly stuck by its commitment to host the 2018 tournament in 12 stadiums in 11 cities selected to host the World Cup would not be changed. A commitment backed by Putin who did say however that the financial spend for Russia would be an “uneasy story,” but manageable.
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