MOSCOW (Reuters) - Fitch ratings agency confirmed its BBB+ investment grade for Russia on Thursday and said strong investment and high oil prices would support the country's economy in the medium term.

"The pick-up in investment growth to around 20 percent this year increases confidence in Russia's medium-term growth prospects, while high oil prices are continuing to enhance its financial position and capacity to absorb shocks," said Edward Parker, Head of Emerging Europe sovereigns at Fitch.

Russia has so far escaped the worst impact of global financial jitters, although the benchmark RTS stock index. has lost about 10 percent in the last three weeks and gas monopoly Gazprom is having difficulties placing a 30-year bond.

The Russian rouble appreciated last week by 0.6 percent against the dollar/euro currency basket used to guide the managed float of the currency as the central bank tries to curb inflation.

Fitch said it forecasts 7.7 percent economic growth and 20 percent capital investment growth in 2007. Government officials said they see 2007 economic growth at 7.1 percent.

The statistical data released on Thursday showed Russian industrial output rising by a healthy 7.8 percent year-on-year in July and analysts said there was no need to review annual growth forecasts.

Fitch said negative factors such as a weak banking sector, exposure to commodity prices, poor governance and political uncertainty over upcoming presidential and parliamentary elections could exert downward pressure on the Russian rating.