Russian Ruble has proved to be the best performing currency in the world so far this year. On the other hand, it is estimated that there will be record business profits in Russia this year. So are the sanctions on Russia having the reverse effect?
Consider two news stories. American website Bloomberg has reported that the Russian currency ruble has proved to be the best performing currency in the world so far this year. On the other hand, London’s famous magazine The Economist has predicted that Russia will have record business profits this year. So the question will arise whether the sanctions imposed by Western countries on Russia are having the opposite effect? On the one hand, sanctions have resulted in increased inflation and economic problems in Western countries. While the Russian economy appears to have strengthened in some respects. Bloomberg has said that Russia has saved the ruble from collapse by adopting a policy of capital control. The ruble’s value against the US dollar at the beginning of this year was 11 percent higher than it was last week. The currency of any other country in the world has not increased in value this year. Bloomberg has made this conclusion based on the assessment of the currencies of 31 countries.
The Economist has said in a report that although Russia has stopped releasing monthly data on trade, data from countries doing business from it indicated that Russia’s trade advantage is increasing rapidly. Last May 9, China reported that its exports to Russia had fallen by about 25 percent. But imports from Russia have grown by 56 percent. Germany’s exports to Russia declined 62 percent in March. Whereas imports from Russia there decreased by only three percent. A similar trend has been observed in the eight largest trading partners of Russia. According to him, while exports to Russia have declined by 44 percent, imports from Russia have increased by eight percent. When the Western countries imposed strict sanctions on Russia, the ruble’s value fell sharply. But later the Russian Central Bank took over. The question is, will this position of profit be sustainable? If this happens, then a difficult situation may arise for the West.