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![The devaluation of the ruble due to low oil prices and sanctions in the past two years made life much harder for average Russians [Xinhua]](http://thebricspost.com/wp-content/uploads/2017/01/236540393_8-e1483624950218.jpg)
The devaluation of the ruble due to low oil prices and sanctions in the past two years made life much harder for average Russians [Xinhua]
At press time, the US dollar had fallen 1.37 per cent to reach 59.53 rubles, the lowest rate in 18 months.
Russia is one of the world’s biggest exporters of oil, but when prices per barrel fell from more than $110 in mid-2014 to $27 a year ago, its economy took a tumble – and the ruble with it.
Coupled with punitive EU and US sanctions against Russia for the situation in Ukraine, the ruble dropped from 33 to the dollar in January 2014 to 78 to the dollar in January 2016.
But oil prices have steadied above the $50 mark for the past month as OPEC and non-OPEC members agreed to trim output.
At press time, international benchmark Brent Crude went up 0.76 per cent to $56.89 a barrel.
In December, Russia’s Central Bank said that overall in 2016, GDP will contract by up to 0.7 per cent but grow in 2017 by up to one per cent.
The assessment is in tandem with International Monetary Fund (IMF) chief Christine Lagarde’s confidence in how Russia has handled its recession particularly amid unstable and weak energy prices in the past two years.
The BRICS Post with inputs from Agencies
