Construction continues on Luzhniki Stadium in Moscow, Russia, in February 2015 as the nation prepares to host the 2018 FIFA World Cup. Photo: ShutterStock / ID1974

MOSCOW, June 22 (UPI) -- Russia reduced its 2018 World Cup budget Monday by $560 million, lowering its spending on hotels and infrastructure.

An order from the office of Prime Minister Dmitry Medvedev said the 30 billion ruble decrease will leave total spending on the international soccer tournament at 631.5 billion rubles ($11.8 billion). No reason was given, but Russia is in the midst of an economic recession caused by the decline in the price of its most valuable export, oil, and an economic sanction by the United States and the European Union over annexation of Crimea and its military involvement in Ukraine.


Vitaly Mutko, Russia Minister for Sport, warned in April construction of 25 luxury hotels would be reduced, citing fears they would not attract patrons after the tournament. He added construction of new stadiums, and the renovation of two existing stadiums, would not be affected by any budget cuts.

Russia gained hosting rights to the quadrennial event by promising six new stadiums, hotels, airport renovations and high-speed rail links between 11 host cities.

A high price tag on Russia's presentation of the 2014 Winter Olympics at Sochi was roundly criticized, and cast attention on the country's corruption and cronyism in construction projects for the event. Like the Olympics, the World Cup is an opportunity to display Russia as a modern, progressive state, but the decrease in funding, over half of which be supplied by the federal government, is an indication aspirations will be lowered.