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Anti-Russia sanctions to impact world: IMF Chief

  • By Al Mayadeen Net
  • Source: Agencies
  • 25 Feb 2022 19:30
  • 2 Shares
2 Min Read

IMF Chief warns that anti-Russia sanctions would impact the world through higher oil, grain prices.

  • x
  • International Monetary Fund Managing Director Kristalina Georgieva
    International Monetary Fund Managing Director Kristalina Georgieva

International Monetary Fund (IMF) Managing Director Kristalina Georgieva said, on Friday, that sanctions imposed by the West on Russia may have an impact on the global economy due to increasing inflation caused by rising oil and grain prices.

"What is happening, of course, has implications for the economy of Ukraine, but the impact is going to go beyond Ukraine," Georgieva said.

She added that "because we have already seen actions taken in terms of sanctions that would add to the economic impact of this crisis and will be transmitted primarily through energy prices as well as grains prices adding to growing concern of inflation and how it can be countered."

Related News

Moscow slams EU for turning open seas into sanctions battlefield

Pezeshkian slams US proposal to trade uranium for sanctions relief

Worries about global supply disruptions and US-European sanctions against Russia pushed global oil prices above $100 per barrel for the first time since 2014, while wheat, soybeans, and maize prices jumped to multi-year highs as well.

Inflation had already been sharply increasing in the US before last week's rise in oil and grain prices, with consumer prices rising at their fastest rate in 40 years in the 12 months to January.

The Russia-Ukraine issue, according to Georgieva, has prompted an exit of funds from emerging economies "when we need exactly the opposite, more financing going there."

It is worth mentioning that Russia owns 3% of its foreign currency in emerging market bonds, and a financial crisis there might spread to the rest of the market.

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