KIEV, Nov. 26 - Suspension of Ukraine’s agreement with the European Union hinders economic and institutional credit improvements, Moody's Investors Service said.

"Suspending its plan to sign the EU agreement reduces the immediate threat facing Ukraine’s external liquidity position, but the lack of further EU integration constrains Ukraine’s access to the EU market and limits improvements in competitiveness, rule of law and energy efficiency, all credit negatives," Moody's said in a report.

Moody's experts said that if Ukraine does not sign the association agreement, Russia is more likely to provide Ukraine with direct external financing (e.g., via Russian state-owned banks); indirect relief via charging lower prices for gas, Ukraine’s largest import item; or other means to support Ukraine’s external liquidity, such as easing access for exporters to the Russian market.