The Russian federal government has committed to invest heavily in the country's inaugural Grand Prix in 2014.

F1 goes to the Russian city of Sochi in 2014
F1 goes to the Russian city of Sochi in 2014

Photo by: xpb.cc

The Ria Novosti news agency reports that the circuit in Sochi, located on the Black Sea coast, is to be built at a cost of towards US $200 million.

And the Krasnodar region's deputy governor Alaxander Ivanov is quoted by Reuters: "The federal government has allocated $195.4 million for this project."

Officials said the remaining few million will be financed through sponsorship and private investors.

In contrast, this weekend's Indian Grand Prix has been financed entirely by the private promoter Jaypee, and the 2013 New Jersey race will also not receive any state help.

The federal government has allocated $195.4 million for this project

Alaxander Ivanov

The New Jersey promoter Leo Hindery told Austin American Statesman newspaper: "As a matter of principle, I don't believe in government subsidies for sporting events.

"I would never have done this project if it took a subsidy."