The Wall Street Journal explains why the Russian ruble strengthens despite Russia’s economic fall following western sanctions. Based on the Dow Jones Market data analysis of 56 currencies, the Russian ruble is the second-best performer against the dollar this year. It’s up 150% since it bottomed days after February 24, when Russia invaded Ukraine. Typically currencies follow countriesʼ economies, writes the outlet, while in Russia, the government took steps to control the Ruble exchange rate. For example, the Kremlin raised rates and forced companies to buy rubles (so they could purchase Russian gas). Moscow limited the amount Russians could withdraw from foreign-currency bank accounts and barred banks from selling foreign currencies to customers. Western sanctions limited Russian imports and commodity exports, which were boosted by high prices, giving another support to the ruble. WSJ writes these efforts come at a cost in the long-term perspective. Russian energy companies, forced to alter foreign-currency payments into rubles, will get fewer rubles per dollar, which will hit the countryʼs budget. The Russian leadership knows about this, and it has started taking steps to weaken the currency. This Thursday, the central bank lowered the interest rate to 11% from 14%. Earlier this week, Russia eased a capital control that required companies to change 80% of their foreign-currency revenues to rubles. Now they only have to change half. Market watchers say the future path of the outlook for the ruble is harder to clean.
Russia is the last European empire that has resisted any decolonization efforts, and this has to change, writes Casey Michele on The Atlantic. As Putin is trying to reconquer territories he views as Russian "rightful possessions", the US finally has to take a stand against Russian ignorance of its imperialistic history. The US had such an opportunity before, writes Michele. As the Soviet Union was falling apart in 1991, President George Bush decided to avoid antagonizing Moscow rather than accelerate the Soviet disintegration, as was advised by Defense Secretary Dick Cheney. Back then nation after nation — Chechnya, Karelia, Komi, Sakha, Bashkortostan, Chuvashia, Kalmykia, Udmurtia, and many more — claimed sovereignty as the Soviet empire crumbled around them. President Bush writes Michele, failed to see the end of the Soviet Union for what it was: not just a defeat for communism, but a defeat for colonialism. Now, when Russia has launched the greatest war in decades, there is no other way than to finalize the project of Russian decolonization. Even acknowledging Russia’s colonial past and present would make some difference, concludes the article.
It is time to demonstrate unity and unprecedented support to Ukraine, writes The Economist. While Ukraine has received weapons and dollars so far, in the fourth month of the war, there are more talks about the need to establish peace or at least a ceasefire by providing Putin with an off-ramp. The arguments in favor of this solution are appealing - ending the war sooner would save lives and what is left of Ukraineʼs economy, not to mention the global food crisis. At the same time, it is more than naive to think Putin is ready to offer long-term peace. The outlet writes President Zelensky is right when he urges western allies to support Ukraine with weapons able to gain back the countryʼs territory in full. Rewarding the aggressor with an off-ramp is still a reward, which would encourage him to regroup and attack again. Furthermore, this would be a call for action to other despots in other parts of the world. Therefore, the only path is to continue supporting Ukraine in its designation to protect its sovereignty.