Possible collapse of Russian economy: V. Putin remains calm

“Despite all the difficulties, I would like to emphasize that the Russian economy is resisting the onslaught of sanctions very well. All major macroeconomic indicators demonstrate this.” Did he announce? “The situation in the economy requires special efforts from the authorities of the Russian Federation, in general, these efforts are having a positive effect”He added.

In response to Moscow’s launch of a military offensive in Ukraine, Western countries tried to deal a heavy blow to the Russian economy with unprecedented sanctions. The supposed purpose of these economic attacks was to push the Russian economy to the point of collapse.

Although many economic sectors have been affected, with international estimates relying on a 10% drop in Russian GDP and the country experiencing high inflation, the ruble has nevertheless resisted the onslaught without the Bank’s drastic measures.Russian Center .
“For its part, Russia is confidently managing to meet external challenges due to its responsible macroeconomic policy of recent years, as well as systematic decisions aimed at strengthening its economic sovereignty and technological and food security. is.” On May 12, announced V. Putin.

On the part of the European Union, after a clear determination to attack Russia in all possible economic spheres, the situation is running out of steam with the failure of the sixth package of sanctions, which some countries such as Hungary fear blocked. Has been done. On the issue of oil. An extraordinary European summit addressing these issues is scheduled for 30-31 May.

Ruble is no longer a kopek!

It should be noted that the Russian ruble rose to a four-year high against the US dollar and a seven-year high against the euro on Friday, May 20.
The ruble is fueled by capital controls, a new ruble-based gas payment system and an impending corporate tax, which are fueling domestic demand for the currency. Reaching 57.67 rubles against the dollar at 08:13 GMT represents the ruble’s strongest position since March 2018, according to data from the Moscow Stock Exchange. The ruble against the euro also increased by about 5%, with the exchange rate reaching less than 60 rubles per euro.

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according to this bloomberg, The Russian currency has become the best performing currency in the world this year, despite a sharp fall in April due to unprecedented economic sanctions imposed on Russia.

However, it has since strengthened due to measures initiated by the Russian central bank and the government. Under the regulator’s capital controls, Russian citizens and residents are allowed to buy euros, US dollars or other European currencies at the official exchange rate, but cannot withdraw foreign funds until September 9. People who held US dollar and euro accounts with Russian banks before March 9 are allowed to withdraw $10,000 or its equivalent for a period up to September 9. However, Russian citizens can buy any other foreign currency and ruble withdrawals are not limited.

The ensuing tax payment also pushes the ruble higher, as traditionally foreign currency requires additional conversion to ruble.

Russian stock indices also rose. The dollar-denominated Moscow Stock Exchange index rose 0.33% to 2,444.57 points, while the ruble-denominated RTS index rose 0.72% to 1,254.69 points at 07:04 GMT, according to trading room data.

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