EU prohibits rating agencies from rating Russia and its companies | Photo credit: Shutterstock
by Mark Jones
LONDON, March 15 (Reuters) – The European Union has decided to ban major credit rating agencies from rating Russian sovereign debt and companies as part of its new sanctions package, the Commission said. European on Tuesday.
“These sanctions will further increase economic pressure on the Kremlin and restrict its ability to fund its invasion of Ukraine,” the EU executive said in a statement.
“They have been coordinated with international partners, in particular the United States.”
The three main financial rating agencies, S&P Global, Moody’s and Fitch, would risk losing the essential license to operate in the Union if they breached this prohibition.
They have already withdrawn some of the ratings assigned to Russian companies targeted by American sanctions, but the decision announced on Tuesday should force them to do the same for dozens of others.
Asked by Reuters, S&P Global declined to comment on the Commission’s announcement. Fitch said it adheres to “all regulations applicable to credit rating agencies” and Moody’s did not immediately respond.
Other sanctions included in the new package of measures adopted by the EU include an embargo on the import of Russian steel products which have so far benefited from European safeguard measures, which should result in a loss of 3, 3 billion euros for exports from Russia.
The new measures also ban the export from the EU to Russia of European luxury goods, including cars and jewellery, and increase sanctions on a number of wealthy Russian nationals linked to President Vladimir Putin.
(Report Marc Jones, French version Marc Angrand)