Rouble up 45% against the dollar, but stronger currency strains Russia’s economy under sanctions

MOSCOW, July 24 — The Russian rouble has surged 45% against the U.S. dollar since the beginning of the year, making it one of the top-performing global currencies in 2025. However, this unexpected strength is becoming a double-edged sword for Russia’s heavily sanctioned economy.

While a stronger rouble may signal stability on the surface, it presents serious challenges. Dollar-denominated energy exports — a key source of government revenue — now yield fewer roubles, putting pressure on the state budget. Russian exporters are also voicing concern, warning that a more expensive rouble makes their goods less competitive in global markets priced in dollars or euros.

The rouble’s rise is fueled by capital controls, reduced imports, and strong energy exports, but economists say sustained strength could weigh on growth if not managed carefully.