Sanctions Against Russia Create Serious Shock for CIS+ Says Fitch

The military actions in Ukraine and the western sanctions against Russia create a serious shock for the CIS+ countries (Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Russia, Ukraine, and Uzbekistan). This is noted by the Fitch Ratings international credit agency in its report.

According to Interfax, the economic impact will be significant throughout the region.

“The uncertainty regarding the course of the conflict and the ultimate scale and duration of the sanctions leads to uncertainty concerning the extent of disruptions in intra-regional trade and financial flows, as well as transport and logistical ties,” the report states.

According to the report, the severity of the announced sanctions makes a decline in the Russian economy inevitable in 2022, which will exert pressure on the CIS+ countries through trade, money transfers, and tourism channels.