Russian rouble falls to lowest value for a year

The Russian rouble has fallen to its lowest value for a year, since shortly after Russia invaded Ukraine.

The currency slid to 82 roubles against the US dollar on Friday morning on the Moscow Stock Exchange (MOEX).

Russia has been hit with massive economic sanctions since it began an offensive in Ukraine in February 2022.

Earlier this year, Russia said its economy had shrunk by 2.1% in 2022, far less than the 15% fall that had been predicted.

The rouble also slid by 2% to 90.06 against the euro on Friday morning.

Traders said the fall was linked to several factors, including lower oil prices in March cutting Russian revenue, and the sale of Western businesses in Russia in the wake of the invasion.

The rouble's value has not slumped to this level since April 2022, though it was even lower in the immediate aftermath of the invasion, when it fell to 113 roubles per US dollar. The currency stabilised in July to reach 50 roubles - but it has weakened again since then.

President Vladimir Putin had insisted the economy was standing strong against economic sanctions, but last week he admitted that the penalties could have a negative effect on Russia.

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Russia's Finance Minister Anton Siluanov said the latest fall was linked to changes to imports and exports to the country.

He added that the exchange rate fluctuated with "the conditions of changing foreign economic conditions".

Asked if people in the country should be concerned, he said the rouble was likely to strengthen thanks to the continued sales of Russian energy on the global market.

Late last year, Western countries imposed a price cap on Russian oil, a huge source of income for the country. It was one of many sanctions imposed by nations supporting Ukraine.

But despite these punishments, the Russian economy has shrunk far less than predicted, and commentators have been surprised at its resilience.

While energy imports to Europe fell sharply in 2022, buyers in China, India and elsewhere stepped in to fill the void. And when hundreds of Western companies withdrew from Russia in protest of the invasion, local entrepreneurs picked up the slack.

Russia has said it is adapting its economy as a result of the sanctions, and that it hopes to have completed this process by 2024.