The Russian ruble has experienced a sharp decline in value over the past few days, reaching its weakest level since March 2022, when Russia had just launched its invasion of Ukraine. As of now, one US dollar (around €0.95) is worth approximately 108 rubles.
The depreciation is not limited to the dollar. The ruble has also weakened significantly against the euro and the Chinese yuan. Currently, over 113 rubles are required to buy one euro, compared to just 106 rubles a week ago. This marks a substantial decline in a very short period, raising questions about the stability of the Russian currency.
Analysts, speaking to Reuters, suggest that the decline could be linked to recent U.S. sanctions imposed on Gazprombank, a key player in Russia’s energy transactions. These sanctions have complicated international trade with Russia, further isolating the country’s economy from global markets and placing additional strain on the ruble. Despite the steep drop in the currency’s value, Russian officials remain publicly unconcerned. Finance Minister Anton Siluanov has stated that the weaker ruble could actually benefit the Russian economy in some areas. According to him, it supports exports by making Russian goods, including oil, cheaper and more competitive in international markets. This advantage could provide some relief to an economy already under significant pressure from sanctions and the ongoing war in Ukraine.
However, the long-term implications of a weaker ruble remain uncertain, particularly as global restrictions on Russia continue to evolve and intensify.