That Russian ruble plummeted at its weakest level in over seven months against the dollar and on track for its biggest one-day decline since July.

The decline on Monday followed Russian President Vladimir Putin’s Visit to Belaruswho fueled fears in Kyiv that he intends to pressure his former Soviet ally to join an offensive on fresh ground and open a new front against Ukraine, Reuters reported.

The decline is also due to concerns that sanctions on Russian oil would hurt the country’s export earnings.

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The ruble was last seen at 68.75 against the dollar, down more than 4.3%. The currency depreciated by almost 10% in December. Corresponding Alfa capital analyst Yulia Melnikova, The slowdown stems from concerns that an oil embargo and price cap will hurt Russia’s oil export earnings and widen the budget deficit as imports gradually recover, the report said. “The sanctions rhetoric is also negative for the national currency,” Melnikova added.

February Brent futures were up 0.8% to $80.47 a barrel during Tuesday morning’s Asia session. That United States Brent Oil Fund BNO closed up 1.53% on Monday, while the Vanguard Energy Index Fund ETF VDE 0.2% lower closed.

outlook: Analysts expect tax payments at the end of the month to come as exporters convert FX earnings into rubles to support the Russian currency. However, after breaching the 65 threshold for the first time since May, it could settle into new, weaker territory, they said.

“Our view on oil, upcoming taxes and dividends allows us to maintain a forecast for a small increase in the near future,” he said Dmitri PolevoiHead of Investments Locko Investaccording to Reuters.

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