U.S. sanctions on Gazprombank lead to ruble's fall
U.S. sanctions against Gazprombank in the fall of 2024 have triggered a significant drop in the value of the ruble.
In December, Russia’s central bank kept interest rates at 21% as it shifted its policies to ease pressure on the country’s struggling economy.
According to British intelligence, Russia's historically high interest rates are unpopular among businesses, particularly as inflation remains elevated and the ruble’s value continues to plummet.
The same intelligence suggests that U.S. sanctions on Gazprombank were a key factor behind the ruble’s sharp decline.
Meanwhile, Russia’s central bank announced it would halt foreign currency purchases until 2025. Despite these measures, the ruble has managed to stay just above the 100-to-1 mark against the U.S. dollar.
(QG - RBC Ukraine / Picture: © Unsplash)