Russia’s power sector needs some $375 billion in investment over the next 25 years, according to a report from the Fitch ratings agency.
The study, Impact on Credit-Worthiness of the Russian Power Sector, indicates this figure amounts to only around a fifth of the investment required in the Chinese power sector over the same period.
Fitch considers that low profitability, large capital investment requirements and significant short-term debts are factors making Russian power companies susceptible to refinancing risks and inadequate investment in infrastructure is a key factor in poor credit ratings.
