Now, exporter demand for rubles has dropped as international sanctions curb Russia’s earnings from oil and gas sales. After initially slumping to around 120 rubles per dollar, the currency quickly rebounded as energy revenue stayed strong and imports shrank - a rally that undermined US President Joe Biden’s assertion that sanctions had turned the ruble into “rubble.” Russia imposed currency controls after its invasion in February last year in a bid to block runaway capital flight and stem the ruble’s collapse. Russia Looks to Fleeing Foreign Firms to Boost Wartime Budget plants and the Russian operations of Nokian Tyres. So far this year, deals have included Norway’s Wenaas Hotel Russia AS selling to Sistema PJSC for €200 million ($218 million), the disposal of 11 Henkel AG & Co. ![]() Total asset sales from foreign companies’ quitting Russia come to about $15 billion to $20 billion last year, according to Bloomberg Economics estimates. At the same time, trading in the Chinese yuan has almost quadrupled as companies shun “toxic” currencies for those of nations deemed “friendly.” Over the year, monthly trading volumes in the ruble-dollar pair dropped to about a quarter of their pre-war levels. “With liquidity in the currency market low, it leads to increased volatility for the ruble.” “The process for approving assets sales by foreigners is opaque,” said Dmitry Polevoy, a strategist at Locko-Invest in Moscow. Shell representatives and Putin’s spokesman Dmitry Peskov declined to comment on the report. Whether Shell will accept the payment is unclear, according to the paper. The Kommersant newspaper reported this week that Putin had allowed Shell to receive and move abroad 94.8 billion rubles ($1.2 billion) from the sale of its stake in the Sakhalin-2 project to Russia’s Novatek PJSC. In response to the penalties, President Vladimir Putin banned foreign companies from selling their assets in Russia without approval from a special government commission. International sanctions are turning the Russian market into a backwater, severed from the global financial system, with liquidity shrinking. ![]() The possible deal - equivalent to as little as one fifth the daily ruble volumes prior to Russia’s invasion of Ukraine - contributed to pushing the currency past the psychologically important level of 80 per dollar for the first time since April 2022 on Thursday. ![]() (Bloomberg) - Speculation that Shell Plc may convert and repatriate more than $1 billion of ruble earnings from the sale of a project in the Far East has helped drive the Russian currency to its weakest level in a year.
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