Russia to continue financing North Caucasus - Standard & Poor`s

Russian federal government will continue to finance the North Caucasus region, experts of the Standard & Poor`s agency believe.

This was stated in the agency's weekly report on Russia's regional affairs.

Standard & Poor's also said that it expects that the average financial performance of Russian local and regional governments (LRGs) will deteriorate in the coming years, even if tax revenues continue to grow, owing to increasing spending pressures.

The report also said that continued spending pressures are likely to further widen the credit quality gap between the wealthiest and poorest LRGs.