The Russian ruble, often denoted by RUB (and alternatively spelled rouble), is the name of the currencies of the Russian Federation and Belarus (and formerly, of the Soviet Union and the Russian Empire).
The ruble has been the Russian unit of currency for several centuries, and its name stems from the Russian verb rubit, meaning, "to chop." Historically, "ruble" was a piece of a certain weight chopped off a silver ingot (grivna). The ruble was the Russian equivalent of the mark, a measurement of weight for silver and gold used in medieval Western Europe. In ancient times, the currency was also called "tselkovyi."
The modern ruble was introduced in 1992 when the former USSR split. Periods of high inflation brought about different issues of banknotes from 1992-1995. In 1998, when a monetary reform took place, the new ruble replaced the old one at a 1:1000 rate. In 2001, modified banknotes emerged, which included improved security features. Ever since the election of President Putin (1999) many positive changes can be observed with the ruble.
| Moody's Rating |
| Baa-3 |
| S&P Rating |
| BB+ |
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Sovereign credit ratings play an important part in determining a country's access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets. |
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Political Structure
The Russian Federation is a federal republic led by a President, who is directly elected for a four-year term. The President nominates the highest state officials, namely the prime minister, and has the ability to pass decrees without consent from Parliament. The President, who also heads the armed forces and the National Security Council, is considered to possess utmost executive power in the Russian government.
The bicameral Parliament is entitled the Federal Assembly (Federalnove Sobraniye). The Parliament consists of an upper house, known as the Federation Council, which is comprised of 178 delegates who each serve a four-year term. The lower house, the State Duma (Gosudarstvennaya Duma), is made up of 450 deputies who serve four-year terms as well. The members of the State Duma are half elected by direct popular vote, and half elected by proportional representation from nation-wide party lists. However, legislation as of mid-2005 suggests that this is subject to change.
Prominent Figures
President: Vladmir Putin II (December 31, 1999-present; as of 2005, serving a second term).
Prime Minister: Mikhail Fradkov
Bank of Russia governor: Sergei Ignatiev
Unique Characteristics
Russia's Finance Minister has characterized Russia's dependence on its oil exports as a 'drug addiction'. Russia is the world's second largest oil producer after Saudi Arabia. With high world oil prices, the sale of oil has led Russia to experience an influx of foreign currency arrivals. Foreign currency inflows that are linked to the oil industry may hinder economic diversification by inflating the value of the ruble and making other sectors uncompetitive.
Key Economic Factors
Gross Domestic Product: The GDP is a measure of the total production and consumption of goods and services in the Russian Federation. The changes in the values of GDP are used to determine business cycle peaks and troughs. There are important changes in Russia's GDP that is noteworthy. Increases in exports can signal greater energy production and pipeline capacity. Household consumption trends give information towards labor market conditions. Lastly, fixed capital formation gives insights towards domestic confidence in economic prospects.
Industrial Production: The industrial production index gives comprehensive data for Russian industrial activity for the whole industry or broken down across sectors. Consistent increases in Russia's industrial activity affects investor's feelings towards debts and will create interest in Russia as rising market economy.
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