As Ruble crashes and companies depart, Russians brace for a dramatic shift in their standard of living
2 years, 9 months ago

As Ruble crashes and companies depart, Russians brace for a dramatic shift in their standard of living

CNN  

New York CNN Business — As Western sanctions take root, Russians are bracing for a dramatic shift in their standard of living as their savings diminish in value and imports of everyday goods are quickly being cut off. Compounding the economic pain, two of the world’s biggest container shipping companies, Maersk and MSC, said they are halting cargo bookings to and from Russia, with the exception of food, medicine and humanitarian supplies. Sven Hoppe/picture alliance/Getty Images Those departures, combined with the plunging value of the ruble, threaten to choke Russia’s economy and deprive Russians of crucial foreign goods such as cars, cellphones, clothing and food. “There has been fairly successful substitution, mainly for food, and on some other parts that go into industrial goods … but it’s mainly been on the lower end of the economic scale,” said Charles Lichfield, deputy director of the Atlantic Council’s GeoEconomics Center. The US export restrictions announced last week are designed to hurt Russia’s military advancement — without causing undue strain on Russian consumers.

Russia Western Putin Russian Russians Lichfield  crashes  dramatic  western  substitution  lichfield  ruble  shift  living  russians  companies  week  russia  standard  depart  sanctions  brace  russias  goods

History of this topic

Russia’s war economy shows new cracks after the ruble plunges
3 weeks, 5 days ago

Russia’s war economy shows new cracks after the ruble plunges

Live Mint  

The Russian economy, surprisingly resilient through two-plus years of war and sanctions, has suddenly begun to show serious strains. The catalyst for the change in economic fortunes was a decision by the Biden administration to ratchet up sanctions on Russia’s Gazprombank, the last major unsanctioned bank that Moscow uses to pay soldiers and process trade transactions, as well as more …

Ruble tumbles as Russia’s war economy comes under increasing strain
3 weeks, 6 days ago

Ruble tumbles as Russia’s war economy comes under increasing strain

Politico  

The ruble has been under steady pressure all summer, as the price of oil — Russia’s most important export, despite Western sanctions — has fallen due to weak Chinese and European demand and rapidly growing supply from the U.S., Brazil and Guyana. That pressure intensified after the U.S. imposed a new round of sanctions on Gazprombank, which until then had …

Russian ruble tumbles to two-year low as US sanctions hit key bank
1 month ago

Russian ruble tumbles to two-year low as US sanctions hit key bank

Firstpost  

The Russian ruble slumped to its lowest level against the US dollar since March 2022, a day after Moscow fired a hypersonic missile on Ukraine and Washington sanctioned a key Russian bank. The Russian rouble plunged to its lowest level in over two years against the dollar on Friday, following new US sanctions targeting a key bank facilitating Russia’s gas …

As Putin eyes sure reelection, Russia’s economy defies sanctions, critics
9 months, 1 week ago

As Putin eyes sure reelection, Russia’s economy defies sanctions, critics

Al Jazeera  

Russian president’s all but guaranteed fifth term in power comes as economy has outperformed expectations. But I doubt that drinking Dobry Cola instead of Coca-Cola will change the election.” Owing to high oil prices and elevated military spending, Russia has managed to mitigate much of the impact of sanctions. It’s true that oil and gas exports have fallen because of …

No 'insurmountable problems' in ruble fall: Putin downplays West's sanctions
1 year, 3 months ago

No 'insurmountable problems' in ruble fall: Putin downplays West's sanctions

Hindustan Times  

President Vladimir Putin on Tuesday downplayed the weakening of the Russian ruble, as Moscow shoulders the economic fallout of its dragging offensive in Ukraine and rising inflation. "This issue requires its own painstaking research by the central bank and the Russian government and financial authorities," Putin said at Russia's Eastern Economic Forum in Vladivostok. Putin has sought to downplay the …

Russia earns less from oil and spends more on war. So far, sanctions are working like a slow poison
1 year, 3 months ago

Russia earns less from oil and spends more on war. So far, sanctions are working like a slow poison

Associated Press  

The Russian ruble’s wobble in value has exposed a crack in President Vladimir Putin’s fortress economy, a vulnerability quickly plastered over by the Kremlin’s economic team in a move that allowed the currency to regain its footing, at least for now. Longer term, however, Russia’s economy is facing a “slow burn” under pressure from sanctions and Putin’s war spending, said …

Russia’s ruble has tumbled. What does it mean for the wartime economy?
1 year, 4 months ago

Russia’s ruble has tumbled. What does it mean for the wartime economy?

Associated Press  

Russia’s ruble has fallen a long way in recent months, and the country’s central bank has stepped in to try to halt the slide. Previously, Russia saw a large trade surplus — which typically supports a country’s currency — because of high oil prices and plummeting imports after invading Ukraine. But oil prices have dipped this year, and it’s more …

Russia’s central bank makes huge interest rate hike to try to prop up falling ruble
1 year, 4 months ago

Russia’s central bank makes huge interest rate hike to try to prop up falling ruble

Associated Press  

TALLINN, Estonia — Russia’s central bank made a big interest rate hike Tuesday, an emergency move designed to fight inflation and strengthen the ruble after the country’s currency reached its lowest value since early in the war with Ukraine. The central bank says demand for goods has exceeded the country’s ability to expand output, increasing inflation and affecting “the ruble’s …

Russian Ruble at Weakest Level Since Early Days of Ukraine War
1 year, 4 months ago

Russian Ruble at Weakest Level Since Early Days of Ukraine War

Live Mint  

The ruble’s decline picked up pace in recent weeks, and on Monday the currency fell below 100 to the U.S. dollar for the first time since the weeks after Russia invaded Ukraine. “The main source of ruble depreciation and inflation acceleration is loose monetary policy,” Maxim Oreshkin, President Vladimir Putin’s top economic adviser, wrote in comments carried by Russian state …

Russia’s ruble hits its lowest level since early in the war. The central bank plans to step in
1 year, 4 months ago

Russia’s ruble hits its lowest level since early in the war. The central bank plans to step in

Associated Press  

LONDON — The Russian ruble on Monday reached its lowest value since the early weeks of the war in Ukraine as Moscow increases military spending and Western sanctions weigh on its energy exports. It led Russia’s central bank to announce an emergency meeting for Tuesday to review its key interest rate, raising the likelihood of an increase in borrowing costs …

Ruble touches 99 to the US dollar, continuing the Russian currency’s monthslong fall
1 year, 4 months ago

Ruble touches 99 to the US dollar, continuing the Russian currency’s monthslong fall

Associated Press  

The Russian ruble, which has been steadily losing exchange value in a long fall since the beginning of the year, hit 99 to the dollar in Friday trading, its lowest level since the early weeks of the Ukraine war. In January, the ruble traded at about 66 to the dollar but lost about a third of its value in subsequent …

Russia’s technocrats keep funds flowing for Vladimir Putin’s war
1 year, 5 months ago

Russia’s technocrats keep funds flowing for Vladimir Putin’s war

Hindustan Times  

VADIM, A CAR-PARTS dealer from a provincial Russian town, never supported the war. Indeed, he broadly backed the West’s sanctions on Russia: how else could you stop the “monsters” intent on destroying his country, as well as Ukraine, if not by hitting their pockets? Gross domestic product contracted by just 2.2% last year, smashing many economists’ expectations, made in the …

Putin: Ukraine losses ‘catastrophic’; Russia eyes ‘sanitary zone’
1 year, 6 months ago

Putin: Ukraine losses ‘catastrophic’; Russia eyes ‘sanitary zone’

Al Jazeera  

Russian leader says no need for new round of mobilisation – for now – claims Ukraine has suffered ‘catastrophic’ losses in its counteroffensive. Referring to Ukrainian incursions and shelling of Russia’s Belgorod and other border regions, Putin said his military would take moves to stop such attacks, and if Kyiv persists, “We will have to consider creating a sanitary zone …

Russia after a year of sanctions
1 year, 9 months ago

Russia after a year of sanctions

Al Jazeera  

The Russian economy has fallen into a recession, but economic and political instability are not yet on the horizon. After Russia’s full-scale invasion of Ukraine in February 2022, Western countries imposed numerous sanctions against Russian banks and companies, which significantly affected the Russian economy. The combined share of these raw materials in Russian exports in 2021 was 11.7 percent, so …

The surprisingly normal life in Russia after 10 months of war with Ukraine
1 year, 11 months ago

The surprisingly normal life in Russia after 10 months of war with Ukraine

Firstpost  

It’s been a year since I last visited Russia. If this is a crisis for Russia — which it is — it’s nothing like the turmoil of the early 1990s when the state, society and economy were all collapsing at the same time. You see reports about it on TV news and chat shows, but I felt much better informed …

Is Russia’s economic resilience realigning the global economic order | In Focus podcast
2 years, 3 months ago

Is Russia’s economic resilience realigning the global economic order | In Focus podcast

The Hindu  

Western sanctions had initially threatened to derail the Russian economy ever since the country invaded Ukraine. However, Russia has shown a resilience that has surprised observers, and which has the potential to realign the global economic order. In a recent article for Business Line, Biswajit Dhar, Professor of Economics at the JNU, points out how observers’ projections for Russia’s GDP …

Did sanctions really hurt the Russian economy?
2 years, 3 months ago

Did sanctions really hurt the Russian economy?

Al Jazeera  

Moscow, Russia – Sanctions have noticeably complicated life for Alexander, a 23-year-old art museum worker from Moscow. “This could potentially open the door for something new and positive.” Over the past six months, sanctions have dramatically changed Russia’s economic relationship with the outside world. Anton Tabakh, chief economist at Moscow-based credit assessor Expert RA, told Al Jazeera that two factors …

Western sanctions to cripple Russian economy did not work: Vladimir Putin
2 years, 6 months ago

Western sanctions to cripple Russian economy did not work: Vladimir Putin

India Today  

Amid heavy fighting in Ukraine with strategic locations under intense shelling from Russian forces, Russian President Vladimir Putin said Western sanctions that were imposed to cripple the Russian economy have failed. The deterioration of the situation in the global economy is not a matter of recent months, it is not connected with Russia's special military operations, said Putin. Putin said …

Vladimir Putin Says 'Made in Russia' No Remedy for Western Sanctions Over Ukraine
2 years, 6 months ago

Vladimir Putin Says 'Made in Russia' No Remedy for Western Sanctions Over Ukraine

News 18  

Russian President Vladimir Putin said Thursday that producing goods locally to circumvent Western sanctions over Moscow’s military operation in Ukraine was not a cure-all and that Russia is looking for new trading partners. Western nations slapped debilitating sanctions on Russia after the start of the Ukraine campaign in February, including import and export restrictions that have snarled supply chains. “The …

Russia may be in Ukraine to stay after 100 days of war
2 years, 6 months ago

Russia may be in Ukraine to stay after 100 days of war

Associated Press  

When Vladimir Putin sent troops into Ukraine in late February, the Russian president vowed his forces would not occupy the country. To Russia, “it’s a pity to give away what has been occupied, even if it was not part of the original plan.” Russian forces captured much of Kherson and neighboring Zaporizhzhia early in the war, gaining control over most …

‘Shooting themselves in the foot’: Western sanctions on Russia
2 years, 6 months ago

‘Shooting themselves in the foot’: Western sanctions on Russia

Al Jazeera  

Moscow has diversified its commodities exports as the EU faces the difficult task of replacing Russia as its energy supplier, analysts say. About a month after Russia launched an invasion of Ukraine, US President Joe Biden hailed the West’s “unprecedented sanctions” on Moscow and said they had caused the rouble to be “almost immediately reduced to rubble”. With Russia accounting …

Russia slashes interest rates as ruble rebound provides some relief
2 years, 6 months ago

Russia slashes interest rates as ruble rebound provides some relief

CNN  

London CNN Business — Russia slashed interest rates on Thursday as a resurgent ruble — buoyed by robust oil and gas revenues and government support— takes some pressure off its wobbling economy. “Inflationary pressure eases on the back of the ruble exchange rate dynamics as well as the noticeable decline in inflation expectations of households and businesses,” the Russian central …

After 3 months of war, life in Russia has profoundly changed
2 years, 7 months ago

After 3 months of war, life in Russia has profoundly changed

India Today  

When Vladimir Putin announced the invasion of Ukraine, war seemed far away from Russian territory. After Russian authorities passed a law calling for up to 15 years’ imprisonment for stories that include “fake news” about the war, many significant independent news media shut down or suspended operations. Andrei Kolesnikov of the Carnegie Moscow Center wrote in a commentary that Russian …

After three months of war, life in Russia has profoundly changed
2 years, 7 months ago

After three months of war, life in Russia has profoundly changed

LA Times  

Few shoppers have visited the GUM department store in Moscow since Russia’s invasion of Ukraine on Feb. 24. After Russian authorities passed a law calling for up to 15 years’ imprisonment for stories that include “fake news” about the war, many significant independent news media shut down or suspended operations. Andrei Kolesnikov of the Carnegie Moscow Center wrote in a …

Ruble surges as Russia considers looser capital controls
2 years, 7 months ago

Ruble surges as Russia considers looser capital controls

Al Jazeera  

The ruble’s rebound has left it more than 30 percent stronger against the dollar than it was before Russia invaded Ukraine. The Economy Ministry said late Monday that the ruble’s appreciation is reaching a peak and capital flows and imports will adapt, taking pressure off the rate, Tass reported. A full “lifting of capital controls would return the ruble to …

EU warns companies not to buy Russian gas in rubles
2 years, 7 months ago

EU warns companies not to buy Russian gas in rubles

Al Jazeera  

Moscow is making good on a threat to cut supplies if payments are not made in its local currency. European Commission President Ursula von der Leyen warned companies not to bend to Russia’s demands to pay for gas in rubles, as the continent scrambles to respond to Moscow’s move to start switching off supplies. Europe is trying to maintain a …

Sanctions hit Russian economy, although Putin says otherwise
2 years, 8 months ago

Sanctions hit Russian economy, although Putin says otherwise

Associated Press  

NEW YORK — Nearly two months into the Russian-Ukraine war, the Kremlin has taken extraordinary steps to blunt an economic counteroffensive from the West. Russian President Vladimir Putin felt emboldened and proclaimed — evoking World War II imagery — that the country had withstood the West’s “blitz” of sanctions. A closer look, however, shows that the sanctions are taking a …

Sanctions Hit Russian Economy, Although Putin Says Otherwise
2 years, 8 months ago

Sanctions Hit Russian Economy, Although Putin Says Otherwise

Huff Post  

LOADING ERROR LOADING NEW YORK — Nearly two months into the Russian-Ukraine war, the Kremlin has taken extraordinary steps to blunt an economic counteroffensive from the West. Russian President Vladimir Putin felt emboldened and proclaimed — evoking World War II imagery — that the country had withstood the West’s “blitz” of sanctions. A closer look, however, shows that the sanctions …

Sanctions hit Russian economy, although Putin says otherwise
2 years, 8 months ago

Sanctions hit Russian economy, although Putin says otherwise

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Russian President Vladimir Putin felt emboldened and proclaimed — …

Russia’s Putin says Western sanctions have failed
2 years, 8 months ago

Russia’s Putin says Western sanctions have failed

Al Jazeera  

Sanctions against Russia over its invasion of Ukraine led to a ‘deterioration of the economy in the West’, President Putin says. Western countries have imposed unprecedented sanctions on Russia’s corporate and financial system since it sent troops into Ukraine on February 24 in what it calls a “special military operation”. Putin said Russia should use its budget to support the …

Russia to pay bonds in rubles, which may cause default
2 years, 8 months ago

Russia to pay bonds in rubles, which may cause default

Associated Press  

NEW YORK — Russia said Wednesday that it made a debt payment in rubles this week, a move that may not be accepted by Russia’s foreign debt holders and could put the country on a path to an historic default. The Ministry of Finance said in a statement that it tried to make a $649 million payment toward two bonds …

Russia: Push to pay for gas in rubles not disrupting supply
2 years, 8 months ago

Russia: Push to pay for gas in rubles not disrupting supply

Associated Press  

BERLIN — Russian officials said their demand for “unfriendly” countries to pay for natural gas in rubles does not mean supplies will be immediately interrupted. A day earlier, President Vladimir Putin said Russia would start accepting ruble payments Friday and gas supplies would be cut off if buyers don’t agree to the new conditions, including opening ruble accounts. The European …

Russia’s ruble rebound raises questions of sanctions’ impact
2 years, 8 months ago

Russia’s ruble rebound raises questions of sanctions’ impact

Associated Press  

WASHINGTON — The ruble is no longer rubble. He added: “The stronger the sanctions packages are going to be, the faster we’ll bring back peace.” Increasingly, European nations’ purchases of Russian oil and natural gas are coming under scrutiny as a loophole and lifeline for the Russian economy. “The ruble’s rebound would seem to indicate that U.S. sanctions haven’t effectively …

EXPLAINED: What Would Paying For Natural Gas In Rubles Instead Of Dollars, Euros Mean?
2 years, 8 months ago

EXPLAINED: What Would Paying For Natural Gas In Rubles Instead Of Dollars, Euros Mean?

News 18  

Europe’s already high gas prices have gyrated since Russian President Vladimir Putin announced plans to have importers pay for Russian natural gas in rubles instead of dollars and euros. “It would be cheaper for foreign importers to pay for Russia’s exports in a currency that is collapsing in value, but it is difficult to acquire rubles and make payments in …

EXPLAINER: What would paying for natural gas in rubles mean?
2 years, 8 months ago

EXPLAINER: What would paying for natural gas in rubles mean?

Associated Press  

BERLIN — Europe’s already high gas prices have gyrated since Russian President Vladimir Putin announced plans to have importers pay for Russian natural gas in rubles instead of dollars and euros. “It would be cheaper for foreign importers to pay for Russia’s exports in a currency that is collapsing in value, but it is difficult to acquire rubles and make …

Germany: G7 rejects Russia’s demand to pay for gas in rubles
2 years, 8 months ago

Germany: G7 rejects Russia’s demand to pay for gas in rubles

Associated Press  

BERLIN — The Group of Seven major economies agreed Monday to reject Moscow’s demand to pay for Russian natural gas exports in rubles. The demand sent already high gas prices even higher amid fears it could be a prelude to a natural gas shutoff, which could disrupt Europe’s economy and hurt Russia’s finances. Asked by reporters earlier Monday if Russia …

G-7 countries reject Moscow’s demand that Russian gas imports be paid for in rubles
2 years, 8 months ago

G-7 countries reject Moscow’s demand that Russian gas imports be paid for in rubles

LA Times  

The organization of major economies known as the Group of 7 has agreed to reject Moscow’s demand that imported Russian natural gas be paid for in rubles, Germany’s energy minister said Monday. Robert Habeck told reporters that “all G-7 ministers agreed completely that this a one-sided and clear breach of the existing contracts.” He said officials from France, Germany, Italy, …

Putin’s war to wipe out 15 years of progress for Russian economy
2 years, 9 months ago

Putin’s war to wipe out 15 years of progress for Russian economy

Al Jazeera  

Russia’s invasion of Ukraine last month spurred a collapse of the rouble and threw global supply chains and commodities prices into chaos. The economy is expected to contract 15% in 2022, followed by a decline of 3% in 2023, leaving gross domestic product where it was about fifteen years ago, economists Benjamin Hilgenstock and Elina Ribakova wrote in a preliminary …

Putin wants ‘unfriendly countries’ to pay rubles for gas
2 years, 9 months ago

Putin wants ‘unfriendly countries’ to pay rubles for gas

Associated Press  

MOSCOW — President Vladimir Putin announced Wednesday that Russia will demand “unfriendly’’ countries pay for Russian natural gas exports only in rubles from now on. Putin told a meeting with government officials that “a number of Western countries made illegitimate decisions on the so-called freezing of the Russian assets, effectively drawing a line over reliability of their currencies, undermining the …

Sanctions send prices up, businesses down and loved ones out of reach for ordinary Russian people
2 years, 9 months ago

Sanctions send prices up, businesses down and loved ones out of reach for ordinary Russian people

India Today  

Western countries, led by the US, UK and European Union, have imposed a number of sanctions and financial penalties on Russia since it invaded Ukraine on February 24. FOLLOW LIVE UPDATES ON UKRAINE-RUSSIA WAR PRICES GO UP Since Russia invaded Ukraine, the Russian ruble has plummeted. As the sanctions kicked in, the Russian government started limiting how much people could …

Here’s how we know sanctions are hurting Russia
2 years, 9 months ago

Here’s how we know sanctions are hurting Russia

CNN  

A version of this story appeared in CNN’s What Matters newsletter. Needing help Russia has sought economic and military help from China, which has stayed notably aloof during the Ukraine invasion, according to conversations CNN had with two US officials.White House national security adviser Jake Sullivan told CNN’s Dana Bash on Sunday that China providing Russia with support is a …

Russia built an economy like a fortress but the pain is real
2 years, 9 months ago

Russia built an economy like a fortress but the pain is real

Associated Press  

Western sanctions are dealing a severe blow to Russia’s economy. Despite the punishing financial sanctions, Russia has built “an economy that’s geared for conflict,” said Richard Connolly, an expert on the Russian economy at the Royal United Services Institute in Britain. The Russian government’s extensive involvement in the economy and the money it is still making from oil and gas …

Explained | Will sanctions against Russia impact long-term supply of wheat, oil, metals and other goods?
2 years, 9 months ago

Explained | Will sanctions against Russia impact long-term supply of wheat, oil, metals and other goods?

The Hindu  

The story so far: Commodity prices have gone into a tizzy after Russian forces invaded Ukraine last month. Many fear that a drop in the supply of essential commodities such as oil, metals, and agricultural goods could negatively affect the global economy that is still recovering from the pandemic. Commodity traders have been unwilling to purchase oil and other commodities …

How Russia’s invasion of Ukraine changed the global economy in a week
2 years, 9 months ago

How Russia’s invasion of Ukraine changed the global economy in a week

CNN  

London CNN Business — A week of war in Ukraine has rocked the global economy, as quick-fire Western sanctions isolated Russia, collapsed its currency and financial assets and sent energy and food prices soaring. Now, a barrage of sanctions have made Russia’s biggest banks radioactive, traders are shunning barrels of Urals crude oil, and Western companies are fleeing the country …

Russians start feeling the heat of Ukraine war sanctions
2 years, 9 months ago

Russians start feeling the heat of Ukraine war sanctions

Associated Press  

MOSCOW — In the days since the West imposed sanctions on Russia over its invasion of Ukraine, ordinary Russians are feeling the painful effects — from payment systems that won’t operate and problems withdrawing cash to not being able to purchase certain items. “Plus, in one supermarket they limited the amount of essential goods one person could buy.” Apple announced …

Ruble plummets as sanctions bite, sending Russians to banks
2 years, 9 months ago

Ruble plummets as sanctions bite, sending Russians to banks

Associated Press  

MOSCOW — Ordinary Russians faced the prospect of higher prices and crimped foreign travel as Western sanctions over the invasion of Ukraine sent the ruble plummeting, leading uneasy depositors to line up at banks and ATMs on Monday in a country that has seen more than one currency disaster in the post-Soviet era. The Russian currency plunged about 30% against …

Russians line up at banks, prices may rise after sanctions
2 years, 9 months ago

Russians line up at banks, prices may rise after sanctions

India Today  

Ordinary Russians faced the prospect of higher prices and crimped foreign travel as Western sanctions over the invasion of Ukraine sent the ruble plummeting, leading uneasy people to line up at banks and ATMs on Monday in a country that has seen more than one currency disaster in the post-Soviet era. The Russian currency plunged about 30% against the US …

Ruble dives, stocks sink as West tightens Russia sanctions
2 years, 9 months ago

Ruble dives, stocks sink as West tightens Russia sanctions

The Hindu  

The ruble plunged to a record low of less than 1 U.S. cent on Monday after Western nations moved to tighten sanctions against Russia, blocking some of its banks from the SWIFT global payments system. Shares were mixed in Asia but U.S. and European futures were sharply lower as President Vladimir Putin escalated tensions by ordering that Russian nuclear forces …

Russians line up at banks as ruble plunges, interest rates jump and sanctions bite
2 years, 9 months ago

Russians line up at banks as ruble plunges, interest rates jump and sanctions bite

LA Times  

People stand in line to withdraw money from an ATM in St. Petersburg, Russia, on Friday. Ordinary Russians faced the prospect of higher prices and crimped foreign travel as Western sanctions over the invasion of Ukraine sent the ruble plummeting, leading uneasy people to line up at banks and ATMs on Monday in a country that has seen more than …

Discover Related