The Russian currency has stabilized after dipping below 100 rubles to the U.S. dollar — but that doesn't mean the pressure is off Russia's economy. Western sanctions have cut into oil earnings, while government spending is heating up the economy, threatening to increase inflation. Russia's central bank can strongly influence the ruble exchange rate, and did that with a recent emergency interest rate increase. But long term, Russia's dwindling oil earnings and higher spending on imports will keep downward pressure on the ruble. Sanctions are working like a slow poison, reducing investment and undermining long-term economic growth. Some analysts suggest a lower price cap on Russian oil will increase the pressure.
