The value of the Russian currency, the ruble, has recovered to pre-Ukraine levels. Questions have been raised as to whether Western economic sanctions against Russia are effective. Some observers say that the value of the ruble will plunge again in the long run as Russia’s intervention to defend against the currency’s depreciation is limited.
According to the AP on the 31st, the rubble against the U.S. dollar in the Russian foreign exchange market was traded at the 85 rubles level the previous day. This is about a month before Russia launched an invasion of Ukraine. Considering that the value of the ruble has fallen to about 150 rubles per dollar as news broke that the U.S. would ban Russian oil and gas imports on the 7th, it is evaluated that it has recovered to stability.
Analysts say that the rebound in the value of the ruble is due to Russia’s extreme defense measures. On April 28, the Russian central bank raised its key interest rate sharply from 9.5 percent per year to 20 percent per year. Russia also imposes strict capital controls on those who want to convert the ruble into dollars or euros. AP pointed out, “The recovery of the ruble may be a sign that sanctions are not as strong as Western countries expected.”
The White House says it will take months for the sanctions to take effect properly. However, some U.S. politicians have voiced the need for stronger sanctions, citing a rebound in the value of the ruble. Republican Senator Pat Toomey said, “The rebound in the ruble shows that U.S. sanctions have not substantially paralyzed the Russian economy,” adding, “Putin must pay for the war.” He added, “The United States should block Russia’s revenue sources by blocking Russian oil and gas sales worldwide.”