The European Commission (EC) reported that the European Union (EU) has banned major credit rating firms from listing Russia’s sovereign debt and the country’s companies as part of its latest sanctions package.
“These sanctions will contribute to increasing economic pressure on the Kremlin and reducing its ability to finance the invasion of Ukraine. They have been coordinated with international partners, notably the United States,” the EC said in a statement.
The three main global rating agencies, S&P Global, Moody’s and Fitch, risk losing their license to operate in the EU if they fail to comply with the ban.
The three firms have already withdrawn a handful of ratings on Russian companies subject to the harshest sanctions from the US Office of Foreign Assets Control (OFAC), but Tuesday’s move will force dozens more to be withdrawn.
S&P Global declined to comment on the commission’s announcement when asked by Reuters. Fitch said it “complies with all relevant standards for credit rating agencies,” while Moody’s did not respond to emails or calls.
Other measures in the EU package include a ban on imports of Russian steel products currently subject to EU safeguard measures, which, according to estimates, would cost Russia approximately €3.3 billion in lost export earnings. 330.15 million).
The export of luxury goods, such as high-end cars and jewelry, has also been banned, and the number of sanctioned wealthy people with ties to Russian President Vladimir Putin has increased.
Source: Gestion
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