Possible suspension of payments of Russian hydrocarbon companies, according to Fitch

rating agency Fitch lowered on Saturday the debt note of 28 companies Russian from raw Materials and stated that a “suspension of payments” seems possible.

Fitch lowered from B to “mainly CC” the note of the important gas group Gazprom, the oil company Lukoil, the mining companies Rusal, Polyus, Evraz and 23 other companies that work with raw materials.

So it is “likely” that these companies will not be able to meet their financial commitments.

For the risk rating agency, the authorization given by the Russian government to return in rubles the debts contracted in countries that appear on a “hostile” list, could compromise the ability of these companies to pay creditors on time.

This list includes all countries in the European Union, Australia, the United Kingdom, Canada, Monaco, South Korea, the United States, Switzerland, and Japan.

This measure is part of a package of actions by the Kremlin and the Russian central bank to try to limit the collapse of the national currency, which lost half its value due to the sanctions of Western powers against Russia after the invasion of Ukraine.

Fitch believes that “the continued tightening of sanctions, including trade and energy import restrictions, increases the likelihood of a political response from Russia and weakens its economy, causing the operating environment for companies to suffer.”

Britain on Tuesday announced an embargo against Russian oil, as well as the United States on oil and gas.

Moody’s, another risk rating agency, had also placed Gazprom and Lukoil’s notes this week at a level that presupposes a very high risk of default.

At the beginning of March, three major rating agencies placed Russia in the category that could not repay its long-term debt, due to the accumulation of sanctions against it.

Fitch later lowered this note much more, indicating that Russia was facing an “imminent default” on its debt.

The lower the solvency score, the less confidence the lenders will have in that country, so the possibilities of loans at reasonable interest rates are very complicated.