Russia's currency, the ruble, has plunged nearly 40 percent since the start of the war against Ukraine. So the discussion started that Russia's economy would collapse in the same way and Europe and America would increase Russia's problems. However, Russian President Vladimir Putin surprised everyone by playing a different game. The collapse of the ruble has been rectified by a single decision by Putin.
Ronald Reagan, the 40th president of the United States, used to tell Europe, "You depend heavily on Russia's natural gas, one day you will have to pay for it." Former President Donald Trump has also repeatedly called on Europe to look for alternatives. Europe has not listened to anyone, and in the end, what it feared seems to be happening. Putin took advantage of Europe's weakness to not only save the collapsed ruble, but also to make it the best-performing currency of March. After the invasion of Ukraine, Russia had to pay 139 rubles for one US dollar. The same situation now stands at 84 rubles against the US dollar.
Putin made a single major announcement that helped improve the ruble's position. "Payment of gas will have to be made only in rubles, otherwise the supply to Europe will be cut off. You will be responsible for what happens in your country," Putin said. Europe would have to pay in rubles, so it was certain that it would be Russia's silver. Germany will have to take its euro and go to the international foreign market, from there it will have to take rubles in exchange for euros and give the same ruble to Russia for gas. Of course, this will increase the demand for the ruble. So the European countries that imposed sanctions on Russia now seem to be managing Russia's economy.
In Europe, the need for natural gas in electricity, factories, vehicles and other essentials is huge. Therefore, European countries are currently on ventilator mode. No matter how many options Europe seeks, many countries depend solely on Russia. Therefore, these countries will have to listen to Putin at least for now. What Putin has done to improve his own economy is a shock to everyone. Because, if Vladimir Putin brings up the collapsed ruble overnight, the question naturally arises as to whether US and European sanctions have any value. Countries like Indonesia are now exploring the possibility of buying cheap oil from Russia. As a result, the Russian economy is beginning to benefit.