Coverage of issues surrounding expropriation of business by the Russian state

New EU Sanctions to Inflict Long-Term Pain

The Moscow Times:

As the new economic sanctions are released by the European Union the analysts predict that Russia’s $2 trillion economy will be squeezed even further as Russian businesses face isolation from international markets.

“Inability to refinance internationally would force corporate borrowers to seek financing from Russian banks. Given the meaningful scale of required refinancing, we believe that the banks would have to rely on the Russian government to finance this gap,” a report by the Standard & Poor said earlier this week.

“The biggest problem is not the sanctions themselves but the wave of negative information that does not appear to be ending. … Even companies that are not sanctioned have difficulty accessing capital,” said Alexander Griaznov, director of corporate ratings at Standard & Poor’s in Moscow.

The companies that are most effected are state-owned energy giants such as Rosneft and Gazprom.

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