The Russian currency weakened by 15% against the U.S. dollar after the United States sanctioned Gazprombank, which handled Russia’s energy trade with Europe and was a major supplier of foreign currency to the Russian market, on Nov. 22.
“In 2022, if you remember, the dollar reached up to 120 roubles. A correction is already happening, the dollar is slightly above 100, and I think it will remain at this level,” Kostin said.
Kostin said that the share of the U.S. dollar assets on VTB’s balance sheet has drastically decreased following Western sanctions.
“Previously, half of the bank’s balance sheet was in dollars, and every exchange rate movement had a significant impact on us. But now we just couldn’t care less,” Kostin said.
“I understand that exporters are pleased (with the exchange rate jump following another package of sanctions from the U.S. Treasury), while importers are not very happy, but to a large extent, this is an emotional outburst,” he added.
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