ruble

Russia's central bank has lowered the official exchange rates it sets for major currencies against the ruble. The move affects the daily rates used across Russia's financial system for accounting, taxation and currency conversion. It comes amid ongoing volatility in the ruble, which has faced pressure from sanctions, energy export fluctuations and shifts in foreign trade flows since 2022.

Russia's economy is showing mounting problems, from high inflation and interest rates to a weakening ruble, yet the Kremlin shows no sign of winding down its war in Ukraine. Reporting from Moscow highlights the tension between a strained household economy and continued military spending. Observers are asking how long ordinary Russians will absorb the costs before the pressure becomes politically significant for the Kremlin.

Saint Petersburg has submitted amendments to its 2026 budget to increase spending on participants in the war in Ukraine. To cover the cost, the city may cut expenditures on education, building repairs and bomb shelters, reducing total city spending by 70.2 billion rubles. The proposal raises questions about how the city will balance war-related obligations against everyday municipal services.