vladimir putten has such a soft spot for the capital that he chose it for the winter olympics. >> it's my honor to present sochi for the olympic winter games in 2014. >> reporter: his vision is a reality, but one that as come with a price tag, the highest ever. for those that are wondering why such an expense for a sports event, this kremlin insider has an answer. >> the olympic games are so important for our russian public, because it ensures that russia finish those social [ unintelligible ] cuts from the soviet union, and the bitter is over, and now russia is able to conduct these international events with high honor. >> reporter: he ensures this is about brand russia, and the way that the countries try to make themselves look attractive on the world stage uses a widely used name, soft power. >> we are living in a world now where soft power has become increasingly important. where the way that people view you is just as important as the threat that you compose. so a lot of countries don't necessarily want to use military might. and they want to be able to rely on other things to eit