One of Russia's richest men calls for ruble devaluation to protect Russian economy from 'shock'
Russian oligarch Oleg Deripaska has called for a weakening of the ruble and a sharp cut in the key interest rate to prepare the economy for a possible global crisis due to the conflict in the Middle East, The Moscow Times reports.
He pointed out that “this sudden conflict in the Middle East will not bring anything good to Russia”, despite rising oil, gas and fertilizer prices. He argued that the global economy will “slow down seriously and for a long time” due to expensive energy resources, which will inevitably have an impact on Russia. Deripaska believes that the situation is aggravated by the strengthening of the ruble last year, which “deprived key sectors of the Russian economy of competitiveness in foreign markets.”
“Our Central Bank macroeconomists, who are so good at juggling numbers, must get together before it's too late and gradually, over the course of four to six months, reduce the key interest rate to 6% and weaken the ruble to at least 105 to every dollar. Then we will get through this crisis without major losses,” said Oleg Deripaska, whose fortune is estimated by Forbes at more than $7 billion.
The Russian oligarch believes that the war in the Middle East will escalate
He warned that war in the Middle East would intensify and the likely outcome was one where the global economy would “cough up because of high energy prices”. In these circumstances, Deripaska says it is necessary for the Russian economy to be prepared in time for an external shock and “to stop unnecessarily slowing down the weakening of the ruble.”
He warned that without changes in economic policy, the consequences could affect living standards and that people would end up spending their summer holidays “in the garden, like in the old days”.
Most large Russian banks do not expect an exchange rate below 100 rubles to the dollar in 2026. Only 3% of market participants anticipate this scenario, according to a study by the National Credit Rating Agency and B1 Group.
The survey included CFOs of 32 banks, which represent 80% of the assets of the Russian banking system. According to the survey, 84% of respondents predict a rate between 80 and 100 rubles to one dollar.
