Consumer Fears

: Analysts had initially linked the ruble value to the price of oil, but the ruble broke free in March-April, continually gaining in value even while the price of Brent hovered between $55 and $60 per barrel, according to The Moscow Times. However, this is simply a natural correction after consumer fears pushed the ruble excessively low in winter. That was an improvement of 28.9 percent and 25.4 percent respectively since early February. Interestingly, that downward swing was the worst among all global currencies, and the current upward surge is the highest. Now the price of oil is more or less stable, the peak of the debt payments has passed and the consequences were not as terrible as anticipated. Back then, the mood in Russia was at its darkest as observers worried that oil prices might fall as low as $30 to $40 per barrel, banks and state-owned companies would struggle making scheduled payments against their hefty foreign debts and that Russia unpredictable foreign policy could trigger additional problems. (news.financializer.com). As reported in the news.