Moody’s says new sanctions against Russia possible

MOSCOW, Oct 23 (PRIME) -- Western countries may impose new sanctions against Russia, Moody’s Vice President Thorsten Nestmann said Thursday.

“The rating outlook is negative because the situation in Ukraine is still unstable, and it cannot be ruled out that the risks will increase, and new sanctions will be imposed or the current ones will be extended, which will pressure the rating,” Nestmann said.

Falling oil prices had a negative impact on Russia’s economy and its investment climate, but despite the issue being one of the factors for downgrading the country’s rating, an increase in oil prices will not automatically raise the country’s rating. The impact of the factor on the Russian economy in the mid-term will be studied, Nestmann added.

On October 18, Moody’s cut Russia's credit rating by one point to Baa2 and maintained a negative outlook.

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