Russian Ruble Hits New Lows After U.S. Sanctions on Gazprombank

The ruble's sharp decline, fueled by sanctions and economic pressures, intensifies inflation and raises concerns over Russia's financial stability.

The ruble has dropped to its lowest value since March 2022, trading at over 109 to the U.S. dollar after hitting 114 earlier this week.
U.S. sanctions targeting Gazprombank, a key conduit for Russia's energy payments, have exacerbated the currency's decline by restricting access to global financial markets.
Russia's central bank raised interest rates to 21% to combat inflation, which reached 8.5% officially but is perceived to be much higher by consumers.
The devalued ruble benefits Russia's export revenues but increases the cost of imports, straining consumer purchasing power and driving up prices for essential goods.
Analysts warn that the combination of military spending, falling oil prices, and sanctions could further destabilize the Russian economy in the coming months.