REUTERS
Oil production in Russia will decrease in 2016 due to the economic sanctions imposed by the European Union and the United States, Fitch Ratings said in its forecast on Tuesday.
At the same time, the credit profiles of Russian oil and gas companies should remain stable, despite low oil prices, owing to progressive taxation and flexible exchange rate of the ruble, according to the report.
Companies with high downstream operations are additionally under pressure from the 'tax manoeuvre,' ruble depreciation, and the reluctance of Russian oil companies to raise oil products prices due to political considerations, the agency noted.
As UNIAN reported earlier, the United States, the European Union and their allies imposed a number of economic sanctions against Russia in 2014, accusing it of meddling in the Ukrainian conflict. In June, the economic sanctions against Russia were extended for six months.