The Russian ruble has experienced a significant decline in recent months, hitting its lowest levels since Moscow launched its full-scale assault on 24 February, 2022.
As of November 27, 2024, the ruble has depreciated by over 24% against the US dollar since early August. At the time of writing, it was trading at 113,15 rubles per one dollar. Other major currencies like the Euro and the Japanese Yen are also performing well against the Russian currency.
The latest slide is attributed to the latest US sanctions, targeting Gazprombank
Announced on 21 November, these limitations effectively ban Gazprombank and its subsidiaries from the US financial system. As a result, they crippled international payment channels, particularly for oil and gas transactions.
The depreciation is further impacted by seasonal demand for imports that necessitate higher foreign currency outflows.
Vladimir Putin’s spokesman Dmitry Peskov has reacted to the news, saying that the dollar rise “doesn’t affect” Russians as “they receive salaries in rubles”, a statement based on an inherently misleading interpretation of economic realities.
