Despite Western sanctions, the rouble has rebounded to pre-war values, why?

The rouble, Russia's national currency, has managed to launch a surprise comeback and return to pre-war levels, despite an exceptional system of international sanctions.

The rouble plummeted in value in the days after President Vladimir Putin's authorization for a full-scale invasion of Ukraine.

As Western nations slammed Moscow with more draconian sanctions, including previously unheard-of measures limiting the Russian Central Bank's ability to access its large pool of foreign reserves, the ruble continued to plummet. The news of an impending default circulated quickly.

The rouble, however, began to rebound slightly by the end of March. By mid-April, its value had risen to 1 RUB = 0.013 USD, a level not seen since the invasion's eve.

What is the cause of this resurgence?

According to Maria Demertzis, deputy director of Bruegel, a Brussels-based economic research tank, EU payments for Russian pipeline gas are playing a large role in keeping the euro afloat.

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