By Marc Jones
LONDON (Reuters) - The European Union has banned top credit rating firms from rating Russia and the country's companies as part of its latest sanctions package, the European Commission said on Tuesday.
"These sanctions https://ec.europa.eu/commission/presscorner/detail/en/IP_22_1761 will further contribute to ramping up economic pressure on the Kremlin and cripple its ability to finance its invasion of Ukraine," the Commission said in a statement, adding the package of measures had been "coordinated with international partners, notably the United States".
Neither the U.S. Treasury, Britain's Foreign Office nor the UK Financial Conduct Authority which regulates ratings in Europe's largest financial centre responded to requests for comment.
The top three global ratings agencies, S&P Global (NYSE:SPGI), Moody's (NYSE:MCO) and Fitch, would risk losing their licences to operate in the EU if they flouted the ban.
All three have already withdrawn or suspended a handful of Russian corporate ratings for firms under the toughest U.S. OFAC sanctions, but Tuesday's step on the face of it would force dozens more.
S&P Global declined to comment on the Commission's announcement when asked by Reuters. Fitch said it "complies with all relevant regulations for credit rating agencies", while Moody's did not respond to emails or calls.
Other measures in the EU's package included an import ban on Russian steel products currently under EU safeguard measures, which it estimated would amount to approximately 3.3 billion euros ($330.15 million) in lost export revenue for Russia.
There was also an export ban on luxury goods such as luxury cars and jewellery, and an increase in the number of sanctioned wealthy individuals with links to Russian President Vladimir Putin.
The measures also come just a day before Russia is due to make its first international market bond payments since being blanketed by Western sanctions.
If the payments are not made by the end of an April 15 'grace period' Russia would be in default on its international debt for the first time since the Bolshevik revolution over a century ago.
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