Plus isn't Siberia like twice the size as Alaska?
The problem with this analysis is that they are not able to import much of anything due to Western sanctions...According to this Russian political scientist, the ruble gaining on the dollar is not such a good thing as you seem to think. The Russian ruble is the world's top-performing currency but its strength masks serious problems in the economy, says political scientist
"The strong ruble is a bad indicator of Russian economic performance generally because it only reflects the fact that imports have fallen so sharply that importers simply do not need so much foreign currency because they're unable to import goods from…Western countries," Matveev said during an interview with All Things Considered.
He noted that the effect of wartime sanctions has devastated Russia' economy, and long-term prospects for Moscow are bleak because of Western businesses halting operations there, soaring inflation, and the heavy toll on locals.
A soaring currency, he said, is not a good measure for the broader economy because it has more to do with trade prospects falling off during the war.
"So the strong ruble only reflects the fact that there is no use for foreign currency in Russia right now," Matveev said. "And this is, of course, a very bad thing for the economy."
I am not sure how you are pointing out a problem with the analysis. He states that's the case. And he points out that the "strength" of the ruble is due to them not being able to spend it on imports. So once the sanctions are gone their value will drop, so it's not Russia fixing its economy. He also points out, in so many words, that the strong ruble is another inflationary hit. A russian loaf of bread didnt suddenly get bigger or better relative to the world. So even though theoretically they can buy more with fewer rubles there is less to buy. Supply and demand is out of whack, even with in Russia and Russian products.The problem with this analysis is that they are not able to import much of anything due to Western sanctions...