TOINNOV - Breaking Energy & Business News

more than 10 000 people every month reads TOINNOV learn more
learn more



TOP STORIES
How will the blocking of Yandex, vk.com and mail.ru affect IT business in Ukraine?

The biggest worry wave users are voicing against the blocking of popular social networks and Yandex....


Construction of New Football Arena in Nizhny Novgorod is under Threat



Such situation resulted in low ruble exchange rate that is why the project is now supposed to be unprofitable.



20.Jan.15 3:33 PM
By Anna Repina
Photo bigpicture.ru

   368

Construction of New Football Arena in Nizhny Novgorod is under Threat
“Stroitransgaz” building company may refuse from continuing any construction works of new football arena for the upcoming FIFA World Championship 2018.This is due to low ruble exchange rate and price increase. Building and raw materials have become more expensive. This fact makes the whole project to be unprofitable.

As a rule the price of building materials is linked to dollar exchange rate. Current economic situation is rather unstable in Russia as well as currency exchange rate. This is why all construction works which are based on previous economic conditions can lead to great losses. On the other hand here is a possibility to continue construction of the arena in case the cost of the governmental contract will be increased at least up to $283 million. The same situation is in Volgograd where construction of local stadium for the upcoming football event is also under threat.

The Head Director of the company explained that his firm is trying to make everything possible in order to complete all necessary construction works as per schedule. For example, they are trying to change contract conditions with some suppliers asking them to reduce the price of building materials. At the same time they are looking for all possible alternatives that may turn out to be cheaper.

The first Deputy of Russian Government Igor Shuvalov will discuss this problem with representatives of building companies during this week. Together they will try to work out alternative strategies which will make it possible to complete all necessary constructions works on time.



Back to the list


Related Information: