Banks Should Raise Their Risk Ranking of Russia as Tensions with the U.S., EU Escalate

By Brian Monroe

Financial institutions should elevate their risk ratings on transactions with entities in Russia as tensions between it and the U.S. and Europe intensify, according to risk management analysts. Diplomatic ties between Russia, the EU and U.S. have been strained since Russia invaded Georgia last month. In response, U.S. and EU leaders have warned of sanctions, although they have yet to detail what form they might take. Though France brokered a cease-fire between Russia and Georgia after 10 days of fighting, Russia raised the ire of the U.S. and many EU politicians when it recognized the independence of breakaway Georgian states...