Sunday, October 15, 2023

Had Putin Not Invaded Ukraine, Ruble Exchange Rate Would Not have Collapsed, Economists Say

Paul Goble

            Staunton, Oct. 11 – When analysts talk about the impact of Western sanctions on the Russian economy, they typically focus on the ways in which such policies have deprived Moscow of many of the goods and services necessary to modernize the Russian economy or at least prevent it from slipping further behind.

            But a more important measure of their impact, Russian economists and commentators surveyed by Novyye izvestiya, is the decline in the ruble’s value as measured by exchange rates with key foreign currencies (

            Before Putin launched his expanded invasion of Ukraine and sparked the Western sanctions in response, the ruble was trading against the US dollar in a range of 60 to 65 to one. Now, the figure is 100 to one, something that makes all Western goods and not just those under sanction far more expensive.

            This decline, Anatoly Nesmiyan who blogs under the screen name El Murid says, is the real cost of Putin’s special operation, one far larger than many assume. There is no other explanation for the ruble’s decline.

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