The Mordovia regional government released a statement saying the federal budget will pay for half the cost of the 45,000-seat stadium and the remaining $138 million will come from unspecified sources, RIA Novosti reported Friday.
The statement said the stadium, dubbed Yubileiny, is expected to recoup its construction costs after the World Cup.
"The stadium will be completely self-financing and make a profit thanks to offices, cafes, restaurants, sport facilities, cinema, auto showrooms and other outlets," the statement said. "The designation of this complex will be universal. It will be a sports, cultural, leisure, shopping and business center, one of the city symbols."
The government said the stadium may be reduced to 26,000 seats after the World Cup and will serve as the new home of local team Mordovia Saransk.