Rouble Weakens Amidst Ukraine Peace Deal Uncertainty

The Russian rouble experienced a decline against the US dollar yesterday, adding to the economic challenges faced by the country. The dollar's value rose to 82.88 roubles, although it had previously reached 83.1. This downturn occurred despite the rouble's earlier gains of 38% against the dollar this year. A continued weakening of the rouble could potentially affect Russia's ability to sustain its military operations in Ukraine.

The former Chief of the National Bank of Ukraine, Kyrylo Shevchenko, commented on the situation, noting the decline of the rouble and Russian stocks amid the collapse of peace talks. He highlighted the dollar's rise, the euro's value, and the drop in the Moscow Exchange, along with losses for major Russian companies.

The rouble's fall coincided with growing uncertainty surrounding a potential peace agreement between Ukraine and Russia. President Zelensky rejected Donald Trump's proposed seven-point peace plan, which led to Trump's response. Zelensky criticized the plan, which involved Ukraine ceding control of Crimea and most of Kherson, stating it violated Ukraine's constitution.

In response, Trump criticized Zelensky, suggesting his statements hindered peace efforts. Trump emphasized the dire situation for Ukraine, suggesting a choice between peace and a prolonged war. He expressed a desire to save lives and stated that the current situation was close to a deal. The US peace plan also included provisions to prevent Ukraine from joining NATO, lift US sanctions on Russia, and grant Ukraine access to the Dnipro river, while the US would control the Zaporizhzhia nuclear plant.