Russia is grappling with rising inflation and a sharp decline in its currency, the ruble, which has caused tensions between the Kremlin and the Central Bank of Russia. The CBR implemented an emergency interest rate hike of 350 basis points to 12% to counter the rapid depreciation of the ruble. The move followed an op-ed by President Putin's economic advisor, Maxim Oreshkin, blaming the central bank's "loose monetary policy" for the inflation and currency troubles. The central bank justified its rate hike by citing the building inflationary pressure, with recent price growth averaging 7.6% annually and core inflation at 7.1%. Russia's shrinking trade balance and Western sanctions have contributed to the economic challenges.