The rouble’s depreciation has highlighted just how much pressure the war in Ukraine – and the sanctions imposed in response – has placed on Russia’s economy. While the sanctions are clearly working, Putin’s continued ability to fund his war shows more must be done.
The rouble’s return to its pre-war exchange rate with the US dollar should not be mistaken as a sign of its resilience. Its recovery is a reflection of unprecedented restrictions on imports and higher oil and gas prices, which will become drags on the Russian economy.