The Russian ruble will stabilize at around 100 rubles to the US dollar after a period of volatility following US sanctions on Russia’s financial sector, Andrei Kostin, CEO of VTB Bank, Russia’s second-largest bank, told Reuters on Monday.
The Russian currency fell 15% against the US dollar after the US imposed sanctions on Gazprombank, which handled Russian energy trade with Europe and was a major supplier of foreign currency to the Russian market, on November 22.
“In 2022, if you remember, the dollar reached 120 rubles. A correction is already happening, the dollar is a little above 100, and I think it will stay at this level,” Kostin said.
He added that the share of US dollar assets on VTB Bank’s balance sheet declined significantly in the wake of Western sanctions.
He continued: “Previously, half of the bank’s balance sheet was in dollars, and every movement in the exchange rate had a significant impact on us. But now we no longer care.”
He added: “I understand that exporters are happy (with the exchange rate rise after another package of sanctions from the US Treasury), while importers are not very happy, but by and large, this is an emotional explosion.”
