(Moscow) – The Russian ruble has reached its lowest value since the start of Moscow’s large-scale military action in February 2022, falling by more than 24% against the US dollar in just three months. As of November 27, the ruble is trading at 113.15 per dollar, marking a significant downturn that has also seen other major currencies, like the Euro and Japanese Yen, perform strongly against it.
The ruble’s decline coincides with a new wave of US sanctions targeting Gazprombank and its subsidiaries. Announced on November 21, these measures effectively ban Gazprombank from the US financial system, crippling international payment channels critical for Russia’s oil and gas exports. The sanctions severely restrict Moscow’s ability to conduct foreign trade, especially in energy, a lifeline for the country’s economy.
Seasonal factors are also exacerbating the depreciation. Russia’s demand for imported goods has increased, necessitating a higher outflow of foreign currencies and further pressuring the ruble.
Kremlin spokesperson Dmitry Peskov attempted to downplay the economic implications, claiming the ruble’s slump “doesn’t affect” ordinary Russians since salaries are paid in the local currency. Economists, however, highlight that the weakened ruble increases the cost of imports, fueling inflation and reducing purchasing power.
Table: Ruble Exchange Rates (November 27, 2024)
| Currency | Exchange Rate | % Change Since August |
|---|---|---|
| US Dollar | 113.15 RUB/USD | -24% |
| Euro | 120.58 RUB/EUR | -22% |
| Japanese Yen | 0.75 RUB/JPY | -20% |
The ruble’s sharp depreciation reflects mounting economic pressures on Russia, where sanctions, war spending, and reduced export revenues weigh heavily. For a country dependent on energy exports, these challenges raise questions about its long-term economic resilience.
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