If Biden's sanctions against Russia aren't hurting Putin's economy or currency, then only normal Americans are suffering.
While the Biden administration blames "Putin's Price Hike" on historic inflation, one would suppose Russia is facing comparable economic instability, especially since most of the industrialized world opposes their war operations.
Nope.
The Russian Ruble is rising against the U.S. dollar.
The ruble is risen 35% this year against the dollar, trading at 55.78. The currency was worth less than a penny after Russia invaded Ukraine.
After Russia invaded Ukraine in February, the U.S. and EU retaliated with economic sanctions to crush the ruble and drive prices rising. The West anticipated pressure would force Vladimir Putin to withdraw from the war, but the ruble has remained strong and Putin has resisted.
Despite Russian economic growth going in the wrong direction, the ruble is the strongest performer against the dollar this year.
After the invasion, Russia's central bank enacted harsh capital restrictions to force ruble buying and limit selling, including ordering exporters to transfer a percentage of surplus revenues into rubles.
Soaring global energy prices also boost the ruble. Oil and gas prices have soared as Russia's exports have slowed.
Brent crude, the global oil benchmark, was at $114 a barrel on Monday morning, while West Texas Intermediate is at $110, up from $75 at the start of the year.
Some foreign buyers of Russia's energy goods must pay in rubles, which has boosted the currency's global strength. CBS News reports that Moscow's energy export revenues are approaching $20 billion per month, despite European efforts to reduce reliance on Russian oil and gas.
“Commodity prices are currently sky-high, and even though there is a drop in the volume of Russian exports due to embargoes and sanctioning, the increase in commodity prices more than compensates for these drops," says Tatiana Orlova, lead emerging markets economist at Oxford Economics.
The currency is so strong that Russia is trying to weaken it. First Deputy Prime Minister Andrey Belousov said 70-80 rubles per dollar is a "ideal" exchange rate for economic growth.
Russia weakened its capital controls after the U.S. and Europe sanctioned its economy. After the invasion, the Russian central bank raised interest rates from 9.5% to 20%, but it has subsequently lowered them to pre-war levels.
In spite of sanctions and international censure, Russia continues to rebuild its Soviet-era dominance.
The preceding is a summary of an article that originally appeared on THE BEARDED PATRIOT.
