Sanction regime against Russia to remain for an extended period - S&P

Source

APK-Inform

1455

The sanctions regime imposed by Western countries against Russia, will remain for quite a long period of time, well into 2015, announced the press release of the rating agency S&P published on September 18.

According to S&P experts, the foreign companies with close ties to Russia are experiencing the direct and indirect effects of sanctions amid an uncertain and weaker business environment. These companies will also have to face the longer-term consequences of the crisis.

However, the business impact could broaden the longer the sanctions regime remains in place, with negative repercussions for both the Russian, and increasingly the European, economy. In addition to the direct impact of the sanctions on the European business in Russia, the further development of the crisis and its duration is considerably uncertain, especially in terms of a fragile recovery of the European economy and low inflation rates.

However, in most cases S&P analysts do not expect that to date the sanctions can affect the credit ratings of on non-financial corporates in Europe.

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