EU bans rating agencies from doing business with Russia

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On Tuesday, the European Union said credit rating agencies were banned from rating Russia’s sovereign debt and the country’s companies.

This will take effect from Tuesday, according to the commission.

The EU, in a statement outlining the contents of the fourth package of punitive measures, said the ban would “lose them even further access to EU financial markets” following the invasion of the EU. Ukraine.

Companies that assign credit scores check a debtor’s ability to repay their debt by making timely principal and interest payments, as well as the likelihood of default on that debt.

The package agreed by EU leaders at a summit last week blocks Russia’s access to funds from the International Monetary Fund (IMF) and World Bank and is set to strip Russia of its status as a “most favored nation” in the World Trade Organization (WTO). ).

The sanctions also ban EU investment in Russia’s energy sector and the country’s military-industrial complex.

Wary of energy supply disruptions, the bloc has resisted targeting Russian energy imports despite strong criticism from Poland, Latvia and Lithuania.

(Afp/NAN)

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