The rating agency Moody's yesterday downgraded Ukraine's credit rating from 'Caa2' to 'Caa3' with a negative outlook, citing increased risks to the country's debt sustainability following the Russian invasion.

"While Ukraine is reaping the benefits of large international financial assistance, which helps it avoid immediate liquidity risks, the subsequent significant jump in government debt is likely to prove unsustainable in the medium term," the agency said.

Moody's, which previously controlled Ukraine's credit rating, has now downgraded it to negative due to uncertainty over the further development of the war and related credit implications.

The leaders of the G7 group, the seven most developed economies, yesterday agreed on a new aid to Ukraine in the amount of 9,5 billion dollars and promised enough money to be able to maintain the functioning of its destroyed economy as long as it fights the Russian invasion.

Moody's now expects the military conflict in Ukraine to last much longer than originally thought, and predicted that Ukraine's GDP would sink by about 35 percent this year alone.

Moody's expects the economy to begin to recover in 2023, but also predicts that the Russian invasion will cause permanent damage to Ukraine's GDP.