Russian prime minister Vladimir Putin confirmed the deal, telling Reuters: “We have reached an agreement with the principal owner of Formula One that Sochi would host the Russian Grand Prix from 2014 to 2020.”
According to The Times, $200m (£126m) we be spent building the Sochi track and Ecclestone will charge $40m (£25m) for the rights to hold the race.
Update: A Russian news site claims a 5.5km track has been designed by Hermann Tilke and has published an image.
Update 2: Thanks to Andres in the comments for posting a link which appears to show the track map is authentic.