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. Last Updated: 07/27/2016

Gazprom's $600M Plans

LONDON -- Gazprom plans to construct an office building and soccer stadium in St. Petersburg that may cost about $600 million, according to property analysts' estimates.

The natural-gas monopoly is inviting designers to develop the Gazprom-City and Gazprom-Arena projects, the company said last week.

The stadium will have 50,000 seats and the office will have 300,000 square meters of space, according to the administration of St. Petersburg.

"The office building won't be cheap," said Nikolai Pashkov, head of marketing at St. Petersburg Realty Corp., one of the largest investment groups in Russia's northwest. "They also plan to involve foreign experts with experience in designing stadiums, where Russian companies may become subcontractors."

Gazprom plans to accommodate its staff operating in the northwest of Russia in the new office, St. Petersburg authorities said.

The office building may cost Gazprom between $1,000 and $1,400 per square meter of space, according to estimates of four St. Petersburg property analysts. None of them had estimates of the stadium costs.

"That will be the largest office building in St. Petersburg," said Svetlana Shalayeva, director of research at Colliers International Russia.

The Gazprom-Arena stadium will be completed in 2009 and the office will be ready by 2010, according to Gazprom and the city administration.