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Problems in Russia?

NEWS STORY
01/08/2013

Disagreement between factions involved in the Russian Grand Prix, due to take place at Sochi in October next year, have cast doubt on the race.

While OJSC "Center Omega" has provided the relevant documents to the Russian Automobile Federation (RAF) for submission to the FIA to host the Grand Prix, the federation is said to be refusing to file the application until "Center Omega" has agreed a number of terms in its contract.

Firstly, the RAF is insisting on having the commercial and intellectual rights for the Grand Prix, and secondly, according to the RAF, the promoter (OJSC "Center Omega") should bear the cost of training the (RAF) personnel for the event.

However, OJSC "Center Omega" argues that the Krasnodar Region, as the main investor and region hosting the Grand Prix doesn’t acquire any property or other rights, so why should the RAF, whilst the "provision of the services under the contract for the sporting organization is unacceptable".

According to "Center Omega", the proposed conditions offer advantages for the RAF whilst prejudicing its own rights, consequently "Centre Omega" does not approve the proposed terms.

Furthermore, the RAF is also understood to be insisting on a long term contract with OJSC "Center Omega" which, it claims, limits its chances of finding sporting organizer.

In reaction to claims that Russia has now missed the deadline to host a Grand Prix in 2014, Oleg Zabara, Deputy General Director of OJSC "Omega" said: "We can file the application until the end of September 2013. We are working on entering into a contract with a sporting organizer and looking forward to conclude a mutually beneficial contract on a parity basis, taking into account the interests of both sides.

"We are taking all reasonable efforts to include Formula 1 Russian Grand Prix in the 2014 FIA calendar," he added.

However, the RAF insists that the deadline has been missed and that the only remaining option is to probe "force majeure" to the FIA.

"The RAF says it is ready to include the Russian Grand Prix on the FIA calendar under force-majeure conditions," it said in a statement.

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