US-based credit rating agency Standard & Poor’s has cut Russia’s sovereign rating to BB+, leaving it below investment grade for the first time in a decade. Moscow termed the decision "overly pessimistic."
The ruble’s rollercoaster path may be finally heading toward stability, according to the International Monetary Fund head of mission Bikas Joshi. The analyst applauds the government actions taken to quell the ruble’s sharp volatility.
Europe will have to get gas via Turkey or Ukraine, there will be no direct transcontinental pipeline to Europe, Gazprom has confirmed. It is disappointing news for Bulgaria, which was hoping to get gas directly from Russia, and not via Ukraine.
Russia needs to reinvent its economic engine, as the current model doesn’t offer appropriate sustainable growth or incentives, Russian Prime Minister Dmitry Medvedev has said. Russia’s GDP does not match its capacity or ambition he added.
The international ratings agency has knocked Russia’s credit rating down a peg, while warning that ‘growth may not return until 2017,’ as the national economy struggles amid sanctions and tumbling oil prices.
The Russian ruble lost 5 percent on Tuesday on the second day of post-holiday trading on the Moscow Stock Exchange. Sliding oil prices, which dropped below $50 per barrel on Monday, continue to weigh on the currency.