- April 5, 2022
- Posted by: Stratford Team
- Category: Economy
In the days following the start of Russia’s invasion of Ukraine on February 24, one of the most notable economic fallouts for Moscow came in the form of a crashing ruble.
The currency kept sinking to fresh record lows against the US dollar as Western sanctions piled up, much of the foreign currency reserves held by the Russian central bank were frozen and rating agencies downgraded Russia’s credit score to junk. At one point in early March, the ruble had crashed by more than a third.
The ruble has since recovered and is now trading around levels last seen before the invasion in a sign that the initial impact of sanctions, some of the harshest in history, could be wearing off.
A part of the recovery can be explained by a stronger financial position that Russia finds itself in thanks to a steep rise in revenues from oil and gas exports and a sharp drop in imports. Bloomberg Economics expects Russia will earn nearly $321 billion (€292 billion) from…