S&P: Russia unaffected

Standard & Poor's said the political events in the Russian Federation over the past few days have had no immediate impact on the sovereign ratings (foreign currency BBB/stable/A-3, local currency BBB+/stable/A-2).

On Sept. 24, president Dmitry Medvedev announced that he would stand back to enable prime minister and former president Vladimir Putin to stand again for president in elections in March 2012. In S&P's view, there is little doubt that Putin will secure a majority, the agency said in a news release.

This power brokering has already had repercussions among senior government officials. Most notably, Medvedev dismissed long-standing minister of finance Alexei Kudrin on Sept. 26 after Kudrin had publicly stated that he was unwilling to be part of a government headed by Medvedev, S&P noted in a news release.

Despite these developments, S&P said that it expects no significant departure from current economic and fiscal policies and expects Russian state capitalism and the close links between politics and business to remain unchanged.

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