MOSCOW: Despite the Russia-Ukraine war, the Russian ruble reached a two-year high against the US dollar and the euro.

While maintaining support for heavy capital controls, the European Union proposed a new package of sanctions against Russia over the events in Ukraine.

The value of the Russian currency has risen sharply against the euro and the dollar, and the ruble has reached a two-year high. The Russian president is playing “extremely sensible” to increase the value of the country’s currency.

The ruble has been depreciating for the past few weeks, due in part to Russian President Vladimir Putin’s obligation to certain Western foreign companies to pay Russian gas and oil only in rubles.

After the Ukraine war, financial sanctions were imposed on Russia, which resulted in the devaluation of the ruble. To deal with this problem, the Russian president announced that gas and oil would be sold to Western countries for only a ruble.

Now foreign companies are buying rubles from the open market for payment and that is why the demand for ruble has increased. The number of rubles in the world market is lower than the dollar and the euro.

On the other hand, declining imports and exports with Russia have also reduced demand for the euro and the dollar for companies.

According to economists, the appreciation of the ruble has been surprisingly rapid, contrary to expectations, and does not generally occur in the market. Then for a few days.

Dmitry Polovay, head of Lako Invest, says Russian economic markets could stabilize if tougher sanctions are not imposed. Russian exporters are also actively selling foreign currency, and he is concerned that The further strengthening of the ruble will eat away at their holdings.