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April 4 Moody's Investors Service downgraded
Ukraine's government bond rating to Caa3 from Caa2 with negative
outlook, citing an escalating political crisis and stressed
external liquidity position after Russia withdrew financial
The escalation of economic sanctions by Russia, with
increases in gas price and potential trade restrictions, would
further hurt Ukraine's economic outlook, Moody's said. (link.reuters.com/nyh38v)
Ukraine on Friday said it was in emergency talks with
European Union neighbors on the possibility of importing natural
gas from the West, following a leap in the price it pays for
"Ukraine's short-term external liquidity pressures have been
exacerbated by the suspension of Russia's support package,"
The urgency of securing affordable supplies has grown since
Moscow - which annexed Crimea from Ukraine last month - raised
its discounted gas tariff for Kiev twice this week, almost
doubling it in three days.
Moody's also expects domestic political risk in Ukraine to
remain high given upcoming presidential elections in May.
(Reporting By Thyagaraju Adinarayan; Editing by Don Sebastian)