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Russia’s sovereign rating resilient to latest US sanctions - Fitch

The agency underlines that sanctions risks would remain high under the Joe Biden administration

MOSCOW, April 17. /TASS/. Russia’s sovereign rating stays resilient to newly-imposed US sanctions, since the sanctions risk was captured on the rating and is consistent with the prognosis, credit ratings agency Fitch wrote on its site on Saturday.

The agency underlines that sanctions risks would remain high under the Joe Biden administration. Along with this, "sustained external surplus, low fiscal deficit, low government debt, <…> substantial fiscal assets and large foreign exchange reserves" support Russia’s "capacity to withstand sanctions." Nevertheless, they might have a negative effect on investor sentiment, Fitch Ratings added.

On Thursday, US President Joe Biden signed an executive order imposing sanctions on Russia. In particular, Washington prohibits US companies "from participation in the primary market for ruble or non-ruble denominated bonds" issued by Russia’s Central Bank, Finance Ministry and National Wealth Fund. In addition, 16 entities and 16 individuals were sanctioned for Moscow’s alleged interference in the US presidential election, and eight more entities and individuals for their work in Crimea. Ten Russian diplomats, who the United States claims to be "representatives of Russian intelligence services," face expulsion from Washington.

On Friday, Kremlin Spokesman Dmitry Peskov said that Yuri Ushakov, the Russian presidential aide, briefed US Ambassador in Moscow John Sullivan on Russia’s response measures to the latest round of US sanctions. In particular, Russian Foreign Minister Sergey Lavrov explained that the US ambassador was advised to leave for Washington for consultations. Russia will offer ten US diplomats to leave Moscow and will launch a procedure than stops the practice when citizens of Russia and third countries are employed by the US diplomatic missions in Russia.