BRASILIA, February 5. /TASS/. The strengthening of the ruble is likely to come to an end by the close of the year, with the exchange rate potentially reaching around 90 rubles per dollar, Russian Union of Industrialists and Entrepreneurs President Alexander Shokhin told reporters.

"The strengthening of the ruble will apparently no longer take place by the end of the year, at least. There is, in principle, nowhere further for it to strengthen. But the fact that it will not reach last year’s forecast levels is already clear. And it still has a long way to fall to the level of 90 rubles per dollar. That is why many are hoping for a benchmark of 90 rubles per dollar by the end of the year," he said.

Shokhin recalled that since last fall many had expected the national currency to move into the 90-95 rubles per dollar range, while some even hoped for a rate of 100 rubles per dollar. "There was a precedent a year ago: at the beginning of last year it was at 100 [rubles]. And of course, a 25% strengthening of the ruble is encouraging. We have become one of the global leaders in terms of the strength of the national currency. But sanctions and restrictions remain in place, export volumes are declining, and prices are not behaving particularly well — I mean prices on global markets for coal, oil, and so on," he added.

According to him, Russian oil is trading on global markets at a discount. All of this, combined with the strengthening of the ruble, sharply reduces exporters’ opportunities and also leads to lower budget revenues. In turn, this forces the authorities to seek additional sources of income and to continue efforts to bring economic activity out of the shadow, Shokhin said.

"But it should be borne in mind that whereas earlier demand for foreign currency, whether yuan or dollars, was largely driven by the need to make foreign-currency payments for imports, now the share of the ruble in foreign trade settlements has increased significantly, severalfold — first of all. And second, import substitution has indeed taken place, which has reduced demand for imported equipment and finished goods," he noted.