The development of the ruble used to be linked to the development of the price of oil – “Now the price of oil has gone up, but the ruble has not strengthened”


“The development of the ruble used to be linked to the development of the price of oil. Now the price of oil has gone up, but the ruble has not strengthened, ” Finnish-Russian Chamber of Commerce managing director Jaana Rekolainen notes.

“The ruble is now more dependent on geopolitics and various political events, even though the Russian economy has recovered well. In a situation where tensions are rising, concerns about the ruble’s exchange rate are appropriate. ”

A weak ruble is detrimental to exporting companies whose product prices are rising in the Russian market. However, Rekolainen points out that companies engaged in production in Russia benefit from low costs.

“On the other hand, when income is repatriated in euros, the ruble exchange rate is reflected in it.”

Aktian portfolio manager And Paulamäki notes that the Central Bank of Russia has in the past acted credibly in supporting the value of the currency. According to Paulamäki, the central bank has tools in place to strengthen the ruble against Western currencies if necessary.

Currently, high energy prices strengthen Russia’s ability to support its own economy and currency. Nordic West Officen the CEO Risto EJ Penttilän According to him, Europe’s need for Russian oil and natural gas is a political risk factor, but the close trade relations it has created can also provide an incentive to improve relations.

“Energy dependency is a screw that Russia can turn, but also a possible key to a compromise.”

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Source: Arvopaperi by www.arvopaperi.fi.

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