Russia’s decision to accept payments for gas in rubles was supported by many countries. This demand issued by Russia’s President Vladimir Putin considerably boosted the national currency.
Recently, the Russian ruble has been rapidly recovering, reaching one record after another. Such a rally could be explained by a jump in the already high energy prices. In addition, since the end of March, most foreign consumers of Russian energy sources have agreed to pay in rubles. Demand for the ruble has soared amid the fact that Russia earns almost $20 billion a month by exporting energy. In other words, the surge in energy prices is offsetting a decline in export volume caused by various embargoes and sanctions. As a result, the ruble has become the strongest currency in the world. Notably, at the end of March, Russian President Vladimir Putin signed a decree saying foreign buyers had to pay in rubles for Russian gas from April 1. Later, the government published a scheme that buyers should follow to make payments. Thus, those companies that want to purchase Russian gas should open two accounts at Gazprombank— one in euros or dollars, and one in rubles. Payment is made in euros or dollars and then the bank purchases rubles in the domestic market and transfers the sum to the ruble account of the gas buyer.
