Russian GP hits further delays

A Russian news agency has reported that Moscow's deputy mayor, Iosif Ordzhonikidze, says the signing of the deal has been postponed until the cost of staging the event, estimated at about one billion pounds, can be covered by private investors.

"We want to lift the burden from the city budget and put responsibility for financing the project completely on the investor," said Ordzhonikidze.

A signing ceremony in Moscow in March hit a last-minute glitch when mayor Yuri Luzhkov refused to sign the contract to host the race. At the time, Formula 1's commercial supremo Bernie Ecclestone insisted that the deal would eventually go through, saying: "We had a handshake more than a year ago and that is a contract."

Originally targeted for the 2003 F1 season, this further postponement is likely to have dashed any plans for the event to be held in 2004. Work on the new permanent circuit on Nagatino Island, south-east of Moscow, will not begin until the contract is signed.

A spokesperson for Russian motorsport's governing body said: "I simply don't know when the signing could take place."