Russian Ruble Hits 32-Month Low Following New U.S. Sanctions

The ruble's sharp decline reflects mounting economic pressures from sanctions, inflation, and war-related spending.

The ruble has fallen to around 115 per U.S. dollar, its weakest since March 2022, after new U.S. sanctions targeted Gazprombank, a key financial channel for Russian energy payments.
Russia's central bank halted foreign currency purchases to stabilize the ruble but inflation remains high at 8.5%, with interest rates already raised to 21%.
Experts highlight that the ruble's devaluation exacerbates inflation, increases import costs, and undermines consumer purchasing power, while benefiting short-term government revenues from exports.
The Kremlin faces growing economic challenges, including labor shortages, falling oil prices, and the cost of sustaining record-high defense spending, which is set to rise 25% in 2025.
Analysts warn that the currency crisis signals deeper vulnerabilities in Russia's war-driven economy, with sanctions increasingly straining financial stability and trade logistics.