PWC predicts Russia will be Biggest European Economy

Edward Parker, the Head of emerging Europe at Fitch pointing to renewed confidence about the Russian economy. “The revision reflects our greater confidence in economic and financial stability in Russia”, The upgrade comes ahead of a major Russian international debt sale its first in more than a decade and makes Fitch the second ratings agency to upgrade Russia this year following in the wake of Standard & Poors. Edward Parker said Fitch noted the impact of rebounding in crude prices over 2009 on Russias budgetary position. The rebound in oil prices, recovery in net private sector capital inflows and economic activity, decline in inflation, reduction in downside risks in the banking sector and a lower than expected 2009 budget deficit outturn underpins our decision to revise Russias rating outlook to stable, Parker said. Finance Minister Alexei Kudrin hailed the Fitch upgrade as reflecting measures the government had taken to manage the economy through the downturn, and could facilitate new investment needed for diversification away from commodities. He said: “This is a big accomplishment, that our ratings are being restored from negative to stable. That means the measures, taken by the government, are correct and they reinforce trust. International trust, and trust from the markets is exactly what Russia needs right now”. Oil and gas revenues in 2009 climbed to more than 0.7 billion, according to Finance Ministry estimates, as much as 45% more than was planned early in

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