Russia » Economics
Author`s name Dmitry Sudakov

International ratings mean nothing to Russia

The head of Fitch international rating agency, James McCormack, said that Russia's rating was under pressure as the country had no new foreign direct investment. Is foreign investment vital for economic development? Pravda.Ru asked this question to Director of the Center for Economic Research at the Institute of Globalization and Social Movements, Vasily Koltashov.

According to the expert, ratings do not matter.

"Moreover, ratings are deceiving us. In the midst of last year's collapse of the ruble, when there was a fantastic flight of capital from the economy, the World Bank upgraded Russia's business conditions rating by 30 positions - from the 92nd to the 62nd place. There were many times in the past, when Russian ratings would be upgraded, but this is nothing but a decoration. Nowadays, rating doesn't mean anything," Vasily Koltashov told Pravda.Ru.

However, to attract foreign capital, the expert said, is important for economic development, although it is very unlikely that the objective is related to ratings.

"Russia's rating should be downgraded, and it will be downgraded, because it is objectively justified. Yet, it does not affect the situation with investment, both foreign and domestic investment, as it depends on the economic policy. In Russia, capital flight this year is likely to be close to last year's numbers - from 100 to 150 billion dollars," the economist predicts.

Vasily Koltashov also told Pravda.Ru that capital outflow from Russia will become more active this autumn.

"Capitals do not experience their best times now. Therefore, many investors tend to take their capitals out of Russia," the expert said.

Meanwhile, rating agencies will be stripped of their licenses for violating rating methodology. The State Duma and the Federation Council of Russia believe that the Central Bank of the Russian Federation should toughen control over rating agencies, Pravda.Ru reports.

The draft law about the activity of credit rating agencies was submitted to the State Duma in February 2015 after three rating agencies - Fitch, Moody's and Standard & Poor's - sharply downgraded the sovereign ratings of Russia for political reasons. Moody's and S&P downgraded Russia to the junk level ('BB +').

Pravda.Ru

S&P rating will not affect Russian economy

Russia to end supremacy of US rating agencies

The discovery of the submarine has unveiled a few "inconsistencies." For example, how can one explain the fact that the sub was found where it needed to be searched for from the start?

Argentina hides the truth about the death of San Juan submarine
Comments
Third Rome and geopolitics of Orthodox schism
Five years after Maidan revolution, Ukraine remains one of Europe's most corrupt states
The Amazon and the New Conquistadores
Brexit: The UK's misunderstanding of Democracy
The Amazon and the New Conquistadores
The Amazon and the New Conquistadores
Kuril Islands dispute between Russia and Japan: The impossible is impossible
Kuril Islands dispute between Russia and Japan: The impossible is impossible
Kuril Islands dispute between Russia and Japan: The impossible is impossible
Russia to raise sunken floating dock
Unemployment in Russia hits record high of 15 percent
Third Rome and geopolitics of Orthodox schism
Brexit: The UK's misunderstanding of Democracy
Why Trump tries to re-industrialize America
Why Trump tries to re-industrialize America
MP suggests replacing Lenin's mummy with rubber figure
Russian Navy admiral says Russia will torpedo US warships, if need be
The horror story called Brazil: Murder and destruction
Russia close to recognising Donetsk and Luhansk republics after Donbass elections
Five years after Maidan revolution, Ukraine remains one of Europe's most corrupt states
Why Trump tries to re-industrialize America