Since immediately after Russia invaded Ukraine, the Russian rouble has reached its lowest level in a year.
The currency fell to 82 roubles per dollar on the Moscow Stock Exchange on Friday morning. (MOEX).
Since February 2022, when it began an offensive in Ukraine, Russia has been subjected to severe economic sanctions.
Russia reported earlier this year that its economy contracted by 2.1% in 2022, significantly less than the 15% decline that had been predicted.
Friday morning, the rouble fell 2% to 90.06 against the euro.
Traders attributed the decline to several factors, including lower crude prices in March, which reduced Russian revenue, and the sale of Western businesses in Russia following the invasion.
In the immediate aftermath of the invasion, the rouble declined to 113 roubles per US dollar, a level not reached since April 2022. The currency stabilized in July, reaching 50 roubles, but has since depreciated.
President Vladimir Putin had previously asserted that the economy was able to withstand economic sanctions, but last week he conceded that the sanctions may hurt Russia.
Anton Siluanov, the finance minister of Russia, attributed the most recent decline to changes in imports and exports.
He further explained that the exchange rate fluctuated due to “changing foreign economic conditions.”
He said Russia’s energy exports would bolster the rouble, so citizens shouldn’t worry.
Late last year, Western nations imposed a price ceiling on Russian oil, a significant source of revenue for the nation. It was one of the numerous sanctions imposed by nations in support of Ukraine.
However, despite these punishments, the Russian economy has contracted far less than anticipated, and analysts are astonished by its resilience.
In 2022, while Europe’s energy imports declined sharply, China, India, and other countries stepped in to fill the void. And when hundreds of Western firms withdrew from Russia in protest of the invasion, local business owners filled the void.
Russia plans to change its economy by 2024 due to sanctions.
