(Reuters) -Fitch has downgraded Russia’s sovereign credit rating to a ‘junk status’ on Wednesday in response to the West’s unprecedented sanctions against Russia over the invasion of Ukraine.

Fitch dropped Russia from “BBB to “B”, and put Russia’s ratings on “rating monitor negative”.

The events of recent days have caused financial turmoil in both countries. They are the largest military assault in Europe since World War Two. Moscow has been hit with severe sanctions.

Fitch indicated that they expect further tightening of the sanctions against Russian banks.

According to the rating agency, these sanctions will likely impact Russia’s ability to repay its debt.

Russia has been subject to sanctions that have increased its chances of defaulting on its dollars and international government debts, according to JPMorgan analysts (NYSE:) on Wednesday.

Fitch also stated that Russia’s GDP potential will be significantly reduced by the imposition of sanctions from Western countries, compared to Fitch’s 1.6% rating.

Last week, S&P lowered Russia’s rating to ‘junk’ status and Moody’s (NYSE:) put the country on review for a downgrade to junk.