Mar.20 (GMM) A dark cloud has moved above next year's inaugural Russian Grand Prix.

Speed Week is reporting that the debt-ridden race organiser, Formula Sochi, has gone bankrupt and been liquidated by authorities of the Krasnodar region.

Construction of Sochi F1 track
Construction of Sochi F1 track

Photo by: Formula Sochi

Just one month ago, Sochi mayor Anatoly Pakhomov announced that the city "will host" Formula One next November.

Speed Week claims that the bigger company, promoter and circuit builder Omega, has taken over full responsibility for the race preparations.

Official Dmitry Erofeev was quoted by the news agency Izvestia as saying the preparations will continue as normal.

Sochi mayor Pakhomov said last month: "The Krasnodar region administration do not have the right for any kind of failure in this project as the country's prestige is at stake.

"In the event of any problems we would definitely receive all the required help from our neighbours and state."