In the seven months following Russia’s invasion of Ukraine, the tables have turned. Initially, major financial and commercial sanctions were imposed on Russia by the U.S., the U.K., the European Union and other nations. This had a telling effect on the rouble, which was trading at 81 per dollar before the invasion and by March fell to 151. However, the rouble recovered quickly in the following months, and by May, it went back to the pre-invasion levels.
In the months following the invasion, tougher sanctions against Russian oil and gas remained a contentious subject for countries in the European region. This was because a quarter of the region’s oil needs were met by Russia before the war. After much deliberation, the 27-nation bloc decided to cut off Russian oil that comes by ship from December 5. Russia also has increasingly decreased its oil exports to the European region and is planning to reduce it further if the U.S. and other nations go ahead with a price cap on its oil.
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