Strong ruble could hurt Russian businesses, official warns

Jun 29, 2022, 4:45 AM | Updated: 9:32 am
FILE - People walk past a currency exchange office screen displaying the exchange rates of U.S. Dol...

FILE - People walk past a currency exchange office screen displaying the exchange rates of U.S. Dollar and Euro to Russian Rubles in Moscow's downtown, Russia, Monday, Feb. 28, 2022. As the ruble strengthens to levels not seen in seven years, Russia's minister of economic development warned Wednesday, June 29, 2022 that the country's businesses could suffer if the trend persists. (AP Photo/Pavel Golovkin, File)

(AP Photo/Pavel Golovkin, File)

MOSCOW (AP) — As the ruble strengthens to levels not seen in seven years, Russia’s minister of economic development warned Wednesday that the country’s businesses could suffer if the trend persists.

The ruble hit all-time lows in the first weeks after Russia sent troops into Ukraine in late February, dropping as much as 50%, to 150 against the U.S. dollar. It then began recovering, and this month has reached its highest exchange rate since May 2015.

The Russian Central Bank’s official exchange rate Wednesday was 52.9 to the dollar. Although the rate is seen by some as a sign that Russia is weathering Western sanctions, the strong ruble makes Russian exports more expensive.

“I think my colleagues will confirm that the profitability of many industries, even export-oriented, has become negative at the current exchange rate,” economic development minister Maxim Reshetnikov was quoted as saying by Russian news agencies.

“If such a situation will last for several more months, I think many enterprises may come to the idea not only of curtailing investment processes, but also of the need to adjust current production plans and reduce production volumes,” he said.

Central Bank head Elvira Nabiullina this month suggested that Russia should broadly reorient its economy away from relying on revenue from exports.

Analysts say the ruble’s strength reflects high global prices for oil and natural gas and that wide-ranging sanctions mean Russia is buying fewer imports.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - State Sen. Jason Rapert, R-Conway, presides over a Senate committee at the state Capitol on ...
Associated Press

Settlement requires Arkansas senator to unblock critics

LITTLE ROCK, Ark. (AP) — An Arkansas state senator will be required to unblock critics from his social media accounts under a settlement a national atheists’ group said it reached with the state on Wednesday. American Atheists announced the settlement in its federal lawsuit against Arkansas over Republican Sen. Jason Rapert’s social media. According to […]
16 hours ago
Associated Press

Missouri man charged with threatening election official

PHOENIX (AP) — A Missouri man has been indicted for leaving a threatening message on the personal cellphone of the top election official in Arizona’s most populous county, federal officials said. The case is the second filed in the past month against people accused of threatening top election officials in the battleground state. In late […]
16 hours ago
New Orleans Police Superintendent Shaun Ferguson talks to reporters outside the federal courthouse ...
Associated Press

Judge: New Orleans police reforms at risk as manpower falls

NEW ORLEANS (AP) — Dwindling manpower and insufficient resources amid a nationwide increase in violent crime are endangering hard-fought, court-ordered reforms imposed on the New Orleans Police Department amid scandals that followed Hurricane Katrina, a federal judge said Wednesday. U.S. District Judge Susie Morgan’s comments raised serious doubts that the city would soon be granted […]
16 hours ago
Associated Press

Oregon top judge denies conflict led to firing of commission

SALEM, Ore. (AP) — Oregon’s chief justice denied Wednesday that a personality conflict led her to fire all members of a commission that governs the Office of Public Defense Services and appoints its executive director. Critics for years have said Oregon’s public defense system is in crisis with far too few attorneys to represent people […]
16 hours ago
Associated Press

2 ex-fraternity members get 6 weeks jail for hazing death

BOWLING GREEN, Ohio (AP) — Two former fraternity members were sentenced to six weeks in jail on Wednesday after being convicted of hazing-related misdemeanor counts in the death of a Bowling Green State University student last year. The two men were both acquitted in May of more serious charges — including involuntary manslaughter and reckless […]
16 hours ago
FILE - A home from actor Brad Pitt's Make It Right rebuilding project is seen in the Lower 9th Ward...
Associated Press

Brad Pitt foundation reaches settlement over Louisiana homes

BATON ROUGE (AP) — Brad Pitt’s Make It Right Foundation and homeowners of the houses built by the program, in an area of New Orleans among the hardest hit by Hurricane Katrina, have reached a $20.5 million settlement. The Times-Picayune ‘ The New Orleans Advocate reported Wednesday that, pending approval by a judge, each of […]
16 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Here are 4 signs the HVAC unit needs to be replaced

Pool renovations and kitchen upgrades may seem enticing, but at the forefront of these investments arguably should be what residents use the most. In a state where summertime is sweltering, access to a functioning HVAC unit can be critical.
...
Sanderson Ford

Don’t let rising fuel prices stop you from traveling Arizona this summer

There's no better time to get out on the open road and see what the beautiful state of Arizona has to offer. But if the cost of gas is putting a cloud over your summer vacation plans, let Sanderson Ford help with their wide-range selection of electric vehicles.
...
CANVAS ANNUITY

Best retirement savings rates hit 4.30%

Maximize your retirement savings with guaranteed fixed rates up to 4.30%. Did you know there is a financial product that can give you great interest rates as you build your retirement savings and provide you with a paycheck for life once you retire? It might sound too good to be true but it is not; this product is called an annuity.
Strong ruble could hurt Russian businesses, official warns