Western Sanctions Push Russian Ruble Over the Edge, It Continues to Fall

Russia’s ruble tumbled to 114.5 against the US dollar, following the US Treasury Department’s decision to impose sweeping sanctions on 50 Russian banks, including Gazprombank, according to Bloomberg on November 27.

The sanctions, announced on November 21, have sent the dollar soaring to a two-and-a-half-year high against the ruble.

Adding to the financial turmoil, shares of Gazprom, Russia’s state-controlled energy giant, plummeted to nearly $1 on the Moscow Exchange—marking a historic lowest.

Until now, Gazprombank had been spared from US sanctions to allow European countries to continue paying for Russian gas supplies.

However, with this key financial channel now severed, international payments for Russian oil and gas will face significant hurdles, cutting off a vital source of foreign currency revenue for the Kremlin.

This is expected to further weaken the ruble, likely pushing it beyond the critical psychological threshold of 100 to the dollar.

Gazprombank plays a central role not only in processing energy payments but also in purchasing military equipment, paying soldiers, and compensating the families of Russian troops killed in Ukraine.

Analysts predict that the ruble will continue to slide as the winter holiday season approaches, with increased demand for imported goods further straining the currency.

Earlier, Turkey was negotiating with the United States to ease sanctions on Russia, which would allow Turkey to continue using Gazprombank for payments related to natural gas imports.