Eric DePoy, a strategist at one of Russia's largest privately-owned banks, Alfa-Bank, commented for Russia Today on how the city of Sochi could grow economically from hosting the Olympics.

Russia Today: We know that a promised state investment in Sochi will be around $US 12 BLN. So can you tell us how significant the private investment can be?

Eric DePoy: Well, $US 12 BLN is obviously a huge amount. I think what can be expected, well, not $US 12 BLN but I say roughly about $US 6 BLN. $US 6 BLN again, that is another huge amount. Well, if you have them together – total $US 18 BLN. That is again very significant amount of money.

RT: Let's talk about what kind of businesses, starting with the most obvious construction business, will benefit most in Sochi?

E.D.: Well, when you think about it, it seems as though all sectors of the economy will participate in this. Perhaps not oil and gas directly or gold producers, for example, but if we go down the list the sector that jumps up immediately is steel. Companies like Evraz, the largest producer in Russia of flat products, the stock is up 6% in London today and investors are jumping on this opportunity. Those other steel producers, Mechel, for example, Magnitogorsk. You can say construction. What is construction? There is road building, there is cement producers, companies that make cables for electric networks. But it touches very much other sectors: you have consumer and retail, for example, telecommunications, Comstar, for example, Golden Telecom. I mean it really will touch broad range of sectors and companies, the deeper you go the more opportunities there are.

RT: Will the region become more attractive for foreign investors, for instance?

E.D.: I think so. I think the Russian government creates the investment mechanism for Sochi. They have these special economic zones in other parts of Russia which include a combination of investment incentives, tax breaks to encourage foreign investment in particular. I would say the investment, at least initially, will come from the CIS countries, again the neighbouring countries. Closer to the event you should see many multinationals coming in. We are talking about Coca-Colas and the Pepsicos. There would be a huge influx of tourists, again which should benefit the airline companies, the hotel builders, again real estate companies like PIK Group. This type of companies will be competing for government money through government tender. But again the private investment will flow there naturally. I think as we get closer to the event we will see just exactly what shape this all take but already today it is very exciting at least on the market, clients are just trying to figure out exactly the opportunities out there and the shape and form that this gigantic project will take over the next few years.

RT: So, as far as I understand, this massive project is going to affect the whole Black Sea region?

E.D.: I think so. I think there are positive and negative aspects. Again, the positive, there will be significant increase in jobs. The South district is traditionally, it seems, in tougher economic times. So I think politically this is going to be very good for the government. They will be able to target direct investment at the region which really needs it. But there are questions out there. For example: what will the dislocation be? I mean perhaps people might have to move, be re-located somewhere. And then there are ecological concerns. If you have to just go in and turn Sochi and the surrounding area into virtually a construction site for several years. What impact will this have in a long-range term. But I think in shorter term there will be huge influx of money. I think people should be thrilled about this. As we see the celebrations there is a huge local support for this. I think just for Russia's investment case this is a major plus. I think we have seen Russia in the past had some little bit of problems with its image. I think especially for the last couple of weeks we have seen the reversal.