Putin clinches deal to host Russian Grand Prix

by Alexander Nemenov

FORMULA ONE: SOCHI, Russia, Oct 16 (AFP): Prime Minister Vladimir Putin and Formula One supremo Bernie Ecclestone Thursday agreed Russia would host its first Grand Prix from 2014, the same year it hosts the Winter Olympics.

According to an agreement signed by Ecclestone in the presence of Putin, Olympics host city Sochi and its Krasnodar region won the rights to host the world's most glamorous racing competition between 2014 and 2020.

The contract - which puts Russia on the global racing map after decades of negotiations with Formula One dating back to the Soviet era - can be extended for another five years.

"On the whole, agreement with the organising company... has been reached," Putin told companies sponsoring the event in the palm-lined southern city.

"The most important thing is we will please millions of fans in our country, millions of people who like auto sport," Putin said in comments released by his government.

A Putin spokesman said the race could be postponed until 2015 if it gets in the way of the 2014 Winter Olympic Games.

"Theoretically, there may be complications related to the preparations for the Olympics," the spokesman told AFP on condition of anonymity in line with government policy.

It is expected that the track will use existing infrastructure as well as new pieces of road being built for the Olympic Games.

Deal has worked

Ecclestone, speaking to Putin in a separate meeting, praised the long-awaited deal for the Sochi Grand Prix.

"I am very happy that Formula One will take place in Russia," he said in comments translated into Russian and released by the Russian government.

"I hope that Formula One will contribute to the development of Sochi which can be seen here."

The hosting of the Grand Prix is the latest ambitious sporting plan championed by Putin, who was instrumental in bringing the Olympics to Russia and is also lobbying hard for the country to host the football World Cup.

Russia's Vitaly Petrov became the country's first ever F1 driver when he was chosen to drive for Renault in the 2010 season, and the competition is widely followed in the country.

Russia came close to hosting a Formula One Grand Prix in 2002 when a deal that was to be signed in Moscow collapsed amid a last-minute dispute over financial terms.

Putin said talks to hold the race had lasted for years under Russian and Soviet leaders.

Finally issue solved

"You personally met and had negotiations on the issue with (Soviet leader) Leonid Brezhnev" who died in 1982, Putin told Ecclestone. "Finally, we've solved this issue after decades of talks."

Putin said Russia would be able to use the infrastructure being built ahead of the Sochi Olympics for the Grand Prix and said the event would increase the popularity of sport with young people in Russia.

"With the construction of the Formula One racetrack, our sportsmen and our auto sport will receive an additional good modern site," he said.

Several top companies, including state conglomerate Russian Technologies, billionaire Oleg Deripaska's Basic Element holding company, Megafon phone company and oil producer Lukoil agreed to sponsor the race, the government spokesman said.

Putin said a managing company would be created consisting of several firms who would organise the Grand Prix. Construction of the racetrack is expected to cost around 200 million dollars.

Russia will pay well

Speaking to Russian daily Kommersant earlier this month, Ecclestone said the annual fee Russia would pay for hosting the Grand Prix would be comparable with that of around 40 million dollars paid by new hosts Singapore and Abu Dhabi.

Putin also pledged to do everything in his power to bag the World Cup for Russia in 2018.

"Russia has never before conducted such competitions," he said. "We will certainly be doing everything to get this competition and it's up to FIFA to make a decision," he said.