Fitch had previously downgraded Russia’s credit rating to junk, which means investors in Russian government bonds are at significant risk. Moody’s and Standard & Poor’s (S&P) also have unimportant ratings for Russia. Because of the sanctions, Russia is facing difficult economic times and government revenue is severely affected. This may make Moscow less willing to meet its debt obligations.

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Fitch now has a C rating for Russia. This is just one step above the state that the country is already in a state of inferiority. According to Fitch, it is very likely that Russia will soon become in default in terms of repaying government loans, given recent developments. The agency also notes the immediate ban on the import of Russian oil and gas by the United States. Fitch believes that Moscow can respond to this by, for example, not repaying some debts.

On Monday, Fitch downgraded Belarus’s credit profile. And the West imposed sanctions on the eastern European country for its cooperation with the Russian army. According to Fitch, close ties with Russia are cause for concern.

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