In December, the Russian ruble strengthened to a level exceeding 76 per USD, marking its most robust position in almost three years. This appreciation can be attributed to the high-interest rates set by the Bank of Russia, alongside a significant drop in domestic demand for foreign currency due to Russia's international economic isolation. Increased sanctions imposed on the Russian central bank and major businesses have hindered domestic market participants from conducting transactions in hard currency, prompting a surge in the central bank's fixes over the year. This shift is highlighted by a 96% reduction in ruble pair trading compared to the period before Russia's invasion of Ukraine. Data from the Bank of Russia reveals that nearly 60% of Russian exports were settled in rubles, a notable increase from 14% in 2021. Recent sanctions have targeted prominent oil companies such as Lukoil and Rosneft, and the European Union has committed to phasing out Russian liquefied natural gas (LNG) by 2027. The Bank of Russia plans to maintain a restrictive policy stance through the end of next year to counter inflationary pressures, which will concurrently provide support to the ruble.