The Russian rouble has rallied since US President Donald Trump entered office for the second time in January as experts accuse him of “appeasing” Vladimir Putin.
Speaking to the Daily Express, experts from Yale University’s School of Management say there is a clear link between President Trump’s anti-Ukraine statements and the improved performance of Russia’s currency.
Professor Jeffrey Sonnenfeld, author of numerous research papers on Russia’s economy since the war in Ukraine began in February 2022, said: “You can see a clear link to Trump’s comments over the last two months and the rally in the rouble.”
He highlighted how the Russian currency “bottomed” on January 2, less than a month before Mr Trump took office.
However, Mr Trump’s comments appear to have contributed to the rouble’s rally since then. The currency jumped after he said he sympathised with the idea that Ukraine should not join NATO on January 7.
The same happened when Mr Trump held a 90-minute call with Putin on February 12 and on February 19 when Mr Trump branded Ukrainian President Volodymyr Zelensky a “dictator”, the experts added.
In recent weeks, it has also been reported that the Trump administration is ready to lift sanctions on Russia.
Tobias Ellwood, former Conservative MP and former chair of the defence select committee, told the Daily Express that Mr Trump is “jumping into bed with Russia.”
He added: “It’s concerning that America is jumping into bed with Russia. When you are voting with Belarus and North Korea, something is seriously wrong (referring to a vote at the UN resolution vote where the US sided with Russia).
“What he just did was turn on Europe in support of Russia. It’s shocking. Trump is treating the world as a jungle where you do deals with good and bad if it serves his interests.
“Trump is talking about this mineral deal. Everyone else is talking about trying to end the war. The takeaway seems to be ‘go with the Trump-Putin deal’, which looks like appeasement, and secondly, has no long-term security guarantees.”
Tom Keatinge, director of the Center for Finance and Security at the Royal United Services Institute (RUSI), a think tank, told the Kyiv Independent that this would be a “huge win” for Putin.
Professor Sonnenfeld and his colleagues – senior research fellows Stephen Henriques and Michal Wyrebkowski – highlight that China is also playing a crucial role in propping up the Russian rouble.
They explain: “There is no open trading of the rouble as an exchange trading currency- it is entirely driven -literally 99% – by China.”
Reuters reports that China’s yuan, which is now the most traded foreign currency in Russia, has become the regulator’s “only instrument for forex interventions.”
However, on Friday, Mr Trump threatened Russia with new sanctions after Moscow’s forces launched fresh attacks on Ukraine
He wrote on Truth Social: “Based on the fact that Russia is absolutely ‘pounding’ Ukraine on the battlefield right now, I am strongly considering large-scale Banking Sanctions, Sanctions, and Tariffs on Russia until a ceasefire and FINAL SETTLEMENT AGREEMENT ON PEACE IS REACHED. To Russia and Ukraine, get to the table right now, before it is too late. Thank you!!!”
