Russia earns less from oil and spends more on war

The Russian currency has stabilized after dipping below 100 rubles to the U.S. dollar. While the ruble has stabilized, that doesn’t mean the pressure is off Russia’s economy. Western sanctions have cut into oil earnings, while government spending is heating up the economy, threatening to increase inflation. Russia’s central bank can strongly influence the ruble exchange rate, and did that with a recent emergency interest rate increase. But long term, Russia’s dwindling oil earnings and higher spending on imports will keep downward pressure on the ruble.