Page 85 - RusRPTNov18

fiscal positions. "What it (government) does need to borrow ... can be financed in the domestic capital market. So they don’t need foreigners, foreign participation in their auctions," Lindow said.
As analysed by bne IntelliNews, the first two weeks of November will bring several key events in the mounting sanction pressure on Russia from the US Congress.
Nevertheless, Lindow said at a conference in Moscow last week that Moody’s could lift Russia’s sovereign rating to the investment grade as early as 2019, citing the government's commitment to fiscal discipline as the key factor in the possible upgrade.
"The government doesn’t spend everything that it has coming in as (it gets) more revenue and it’s able to build reserves with that," she said. "With borrowing requirements so low, it can be resilient to the impact of more severe sanctions than we are anticipating."
Russian assets and outlook have been under pressure since August from the risk of additional tough sanctions that are part of a draft bill due to be debated by the US Congress later this year.
A decision by Congress is still pending on potential "nuclear" and "crushing" sanctions options: the Defending American Security Against Kremlin Aggression Act (DASKAA) and Defending Elections from Threats by Establishing Redlines Act (DETER) that target Russian sovereign debt, state banks and energy majors.
Previous unconfirmed reports claimed that the US Congress is unlikely to pass any new sanctions until after the November 6 mid-term elections . Apart from the results of the elections, as well as the degree of alleged Russian interference, the possible meeting between presidents Vladimir Putin and Donald Trump in Paris on November 11 will be key for assessing sanction risks.
85 RUSSIA Country Report November 2018 www.intellinews.com