The Russian government is to spend nearly $200 million in order to build the new circuit that will host the first F1 event in the country in 2014.

It was revealed just over twelve months ago that a deal had been agreed for a race in the resort of Sochi [See separate story HERE, with an agreement in place for some seven years.

Speculation has suggested that the inaugural race could be put back a year because of a clash with the Winter Olympic games, which are being held in Sochi in 2014, although officials insist that the necessary infrastructure will be in place to ensure both events can go ahead without hindering each other.

To that end, the government will put a total of just under $200 million into the project, with the remaining money coming from sponsorship and private investors.

"The federal government has allocated 5.846 billion roubles ($195.4 million) for this project," Alaxander Ivanov, deputy governor of the Krasnodar region, was quoted by Reuters.

Interest in Russia has been boosted somewhat since Vitaly Petrov joined the grid at the start of 2010.