U.S. Secretary of State Antony Blinken said the ruble’s rebound is fueled by “a lot of manipulation” by Russian authorities and won’t be sustainable.
“People are being prevented from unloading rubles,” Blinken said on NBC’s “Meet the Press” on Sunday. “That’s artificially propping up the value. That’s not sustainable. So I think you’re going to see that change.”
Russia’s central bank has imposed severe capital controls to help counter financial sanctions by the U.S. and its allies and the impact of an exodus of Western companies after President Vladimir Putin’s invasion of Ukraine. That’s helped prop up the currency, which closed at 85.42 rubles per dollar on Friday, almost matching the exchange rate on Feb. 24 when Russia began the war.
The ruble has also withstood the refusal by European countries to conduct natural-gas sales in rubles.
In March, the White House took a similar stance when it derided the partial resumption of Russian equities trading as a “Potemkin market opening” that’s “not a sustainable model.”
Export controls imposed to deny Russia access to technology will have an increasing impact, Blinken said.
“Having said that, we’re working every single day with partners and allies around the world to make sure that we’re tightening the sanctions, closing any loopholes, adding new ones,” he said.
Russia’s economy, however, is on track to see $321 billion in energy exports this year, Bloomberg reported Friday, if oil and gas continues to flow.
That estimate from Bloomberg Economics would be an increase of more than a third from 2021, providing an economic lifeline.
