Rouble Recalibration: Navigating Post-Sanction Volatility

After U.S. sanctions against Russia's financial sector, the Russian rouble is expected to stabilize near 100 to the U.S. dollar, says Andrei Kostin, CEO of Bank VTB. Sanctions have impacted Gazprombank, reducing VTB's U.S. dollar assets significantly and creating dissatisfaction among importers despite exporters' gains.

The Russian rouble is poised to stabilize around 100 to the U.S. dollar following recent volatility caused by U.S. financial sanctions, according to Andrei Kostin, CEO of Russia's second-largest bank VTB. The currency experienced a 15% decline after sanctions targeted Gazprombank, a key player in handling Russia's energy trade.

Reflecting on past currency fluctuations, Kostin noted today's correction, with the dollar slightly above 100 roubles. This adjustment appears sustainable, primarily due to the reduced presence of U.S. dollar assets on VTB's books, a direct impact of the Western sanctions.

Kostin expressed that while exporters may benefit from the currency's jump, importers face challenges. Nevertheless, he views these reactions largely as emotional responses to the latest sanctions from the U.S. Treasury.

(With inputs from agencies.)