Ruble Plunges to 20-Year Low Amid Ongoing Conflict

The Russian ruble has depreciated significantly over the summer of 2026. By August, the exchange rate had risen to 86 rubles per US dollar and 100 rubles per euro.

This is not a new phenomenon for the ruble. According to data from the Moscow Exchange, it has fallen 20 times since 1998. The most significant decline was in 1998, when the ruble depreciated against the dollar by more than 58% due to devaluation.

Economist Alexander Isakov points out that the ruble strengthened in the first half of the year due to a rise in oil prices caused by the US-Iran conflict. However, this was followed by a decline in oil prices and an increase in foreign exchange purchases by the Ministry of Finance, which contributed to the ruble's depreciation.

The Central Bank has also been slowly lowering interest rates, which is another factor putting pressure on the ruble. Analyst Anastasia Stepantsova identifies three factors contributing to the ruble's depreciation: a reduction in export deliveries through the Black Sea, a seasonal increase in demand for foreign exchange from importers, and investors accumulating currency as a defensive asset.