Damage to Russia without a war, cancellation of contracts for ₽1 trillion. Highlights of the Night Russia

will suffer economic damage, even if there are no sanctions, government construction contracts for ₽1 trillion were canceled in a year, how laws on special economic zones will be changed,will every tenth bus be converted to hydrogen - in the RBC review

Fitch and S&P warned of damage to RUSSIA without a war with Ukraine

The Russian economy could be damaged even if it does not invade Ukraine, analysts at S&P and Fitch said. Both agencies, in the event of an escalation, warn of the risk of restrictions for non-residents to conduct transactions with Russian government bonds on the secondary market, restrictions for companies in the energy and mining sectors, as well as sanctions against large financial institutions in Russia.

However, Fitch's base case assumes that a full scale invasion will not occur. Nevertheless, the agency notes that tensions around Ukraine have increased the risk of conflict and the imposition of more serious sanctions, which could be triggered by local military actions and cyber attacks. S&P also sees tough sanctions as a "very negative scenario". But even if they are not implemented, the threat of sanctions will affect long-term growth and weaken Russia's integration into the world economy.

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During the year, government construction contracts for 1 trillion rubles were canceled in Russia.

In 2021, government contracts totaling 1.01 trillion rubles were canceled in the construction sector, according to the National Association of Builders, which represents the interests of more than half of the country's construction companies. This is 26% of the sum of all government construction contracts concluded last year, and almost 20% in terms of the number of such contracts.