The Fitch Agency foresees an imminent default of the Russian debt to downgrade Russia’s sovereign debt rating six more notches to ‘C’ as a result of the situation created byor the Russian invasion of Ukraine.
The West has imposed severe sanctions on Russia and in reaction the president Vladimir Putin has signed an emergency document to prohibit the export of certain raw materials.
A committee will determine a list of commodities subject to this ban.
Also, the Russian Central Bank announced limits from yesterday to on September 9 at $10,000 (or its equivalent in another currency) the maximum that a client will be able to withdraw in cash from their foreign accounts.
The scenario could lead Russia to a situation similar to that of 1998, when its economy contracted by 5.3% in the midst of the debt crisis.
J. P. Morgan has assured its clients that they expect a 7% contraction in GDP this year, while Bloomberg Economics forecast a drop of around 9%.
US bans oil and other energy imports from Russia
The president of United States, Joe Bidenannounced this Tuesday at a press conference the immediate ban on importing Russian energyand revealed that the US Government is working with the European Union so that the Twenty-Seven can take the same step.
“We want our European allies to become independent of Russian energy,” Biden said.
The US ban will include Russian oil, liquefied natural gas (LNG) and coal.
Finally, the Biden administration took the step, given the ability of the United States to replace the 200,000 barrels that imports daily from Russia.
The barrel of Brent arrived yesterday at $127.98 after knowing the intentions of the USA, and that of WTI Texas rose to $123.70. The reference barrel in the US seems to be discounting the effect of sanctions.
