IMF says Russia could go bankrupt due to sanctions – Observer

The International Monetary Fund (IMF) on Thursday acknowledged the sanctions imposed by Russia over the invasion of Ukraine and warned that the Russian economy was shrinking and entering a recession.

“Russia’s bankruptcy is no longer an impossibility,” said IMF Director-General Kristalina Georgieva in an online interview with reporters about the financial implications of the Ukraine war.

Georgieva pointed out War and sanctions will determine how strong the recession will be in RussiaAs well as the possibility that they could severely affect energy exports.

The Director General explained that the delegation of the International Monetary Fund in Moscow has been closed and that the company has not currently taken any action with Russia and that Russia’s reserve funds are practically inaccessible to the country due to sanctions. In other countries.

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In an imaginary exodus of Russia from the IMF, Georgieva explained The only way the company’s laws provide for the expulsion of a member is to violate its financial obligations.This is something the Russians didn’t do until this Thursday, so this is a scene that is not financially thought out.

On Wednesday, the IMF Executive Board approved $ 1,400 million (approximately 3 1,300 million) in emergency aid to Ukraine and warned that the war would cause a “deep recession” in the country.

The IMF said in a statement that Georgia acknowledged that the amount approved by the fund was similar to the amount requested by the Ukrainian government and would help “minimize the economic impact” of the war launched by Russia on Ukraine. , Hurry ”and can grow.

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