Part 3/7:
He refers to the Russian Ruble, explaining its close correlation with oil prices, to illustrate how these sanctions are likely to lead to a depreciation of the currency. The sanctions do not annihilate the Russian oil sector outright but impose incremental costs that disrupt its economic viability. Gard emphasizes the importance of understanding these incremental effects—while they do not signify an immediate collapse, there is a gradual upward trend in marginal costs that may lead to a much larger economic crisis for Russia.