Since the war between Russia and Ukraine began, Russia has been subjected to many sanctions. These sanctions were aimed at wiping out at least 15 years of economic growth, and the country was meant to face the worst recession it ever did.
It did have an impact. Factories to shut down. Unemployment increased. Inflation soared to 20 per cent. But then, Russia, which was preparing for this war for a decade, started using these economic sanctions to their advantage.
Since the value of the ruble was expected to go down, Russia began buying gold so that they can peg the Ruble to the precious yellow metal. This, in turn, increases the trust in the currency, allowing other nations to trade–particularly oil, gas, wheat and other essential commodities–not in dollars but in Rubles.
The rich Russians also started buying things they barely need so that the value of the currency remains stable. This has now led to a sharp rise in the value of the ruble, contrary to what the sanctions aimed to achieve.
Another reason for the increase in the ruble is high prices. The prices of oil and gas have increased, making export revenue high. India is one of the countries that imports energy from Russia.
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