While there is no reason to think that Russia’s economy is on the brink of collapse, the ruble's recent depreciation has highlighted just how much pressure the war – and the sanctions imposed in response to it – has placed on Russia’s economy. Now, the West must go even further.
PARIS – Within days of Russian President Vladimir Putin’s full-scale invasion of Ukraine 18 months ago, the West imposed unprecedented sanctions on Russia’s central bank, freezing hundreds of billions of dollars of its assets. The ruble plummeted, reaching a record low of 136 to the US dollar a week after the invasion. But after the central bank imposed currency and capital controls, the ruble bounced back, strengthening to ₽51.5/dollar – a recovery that the Kremlin eagerly touted.
PARIS – Within days of Russian President Vladimir Putin’s full-scale invasion of Ukraine 18 months ago, the West imposed unprecedented sanctions on Russia’s central bank, freezing hundreds of billions of dollars of its assets. The ruble plummeted, reaching a record low of 136 to the US dollar a week after the invasion. But after the central bank imposed currency and capital controls, the ruble bounced back, strengthening to ₽51.5/dollar – a recovery that the Kremlin eagerly touted.