Russian Ruble Surges in Value

Peace talks between Russia and Ukraine have increased investor confidence (Wikimedia Commons).

The Russian ruble has surged in value against the dollar since the start of the year, and especially since the inauguration of U.S. President Donald Trump, according to Meduza. The dollar has lost over 25 percent of its value against the ruble since the start of the year, and about 18 percent of its value since President Trump’s inauguration. Bloomberg reports that this makes the ruble one of the best-performing currencies so far this year. 

The ongoing peace talks between Russia and Ukraine has been a primary factor driving the rise of the ruble, increasing investor confidence that the United States and EU may soon lift sanctions they imposed on Russia following its full-scale invasion of Ukraine in 2022. Russia has also increased its trade surplus in January-February 2025 by 15 percent as compared to the same period last year, increasing demand for the ruble.

Prior to the recent surge in value, the ruble experienced massive depreciation, losing about one third of its value against the dollar between summer 2024 and November of the same year, according to DW. New sanctions on Gazprombank, one of the few Russian banks that had not yet faced Western sanctions, were the primary factor driving this depreciation, along with rampant inflation amid a boom in Russian war spending.

While the ruble’s recent surge makes imports cheaper for Russians, it also presents a threat to the state budget, which is heavily reliant on oil exports. When the ruble appreciates, the Russian state receives fewer rubles for each barrel sold after converting oil revenue from dollars. Top international tourist destinations for Russians, like Türkiye, meanwhile, are reporting a surge in reservations following the ruble’s appreciation, per Hürriyet Daily News.