WASHINGTON (AFP) - Moody's cut Russia's debt rating by one notch into "junk" territory Friday, saying the Ukraine crisis and the fall in oil prices and the rouble will further undermine Russia's economy.

"Russia is expected to experience a deep recession in 2015 and a continued contraction in 2016. The decline in confidence is likely to constrain domestic demand and exacerbate the Russian economy's already chronic underinvestment," Moody's said.