IMF: Europe faces harsh winter by giving up on Russian energy

By Al Mayadeen English
Source: Agencies
1 Jan 23:57

Speaking on matters related to the war in Ukraine, IMF Director Kristalina Georgieva said the IMF is working on providing support for the country in 2023.

IMF Managing Director Kristalina Georgieva

IMF Managing Director Kristalina Georgieva said on Sunday that 2023 will be a "tough year" for much of the global economy as major economies around the world, namely the US, Europe, and China, will all experience a decrease in economic activity.

“Half of the European Union will be in recession next year. China is going to slow down this year further,” Georgieva told the CBS Sunday morning news program "Face the Nation".

"More uncertainty, more overlap of crises wait for us. Rather than crying for the time we had, we have to buckle up and act more agile," she stressed.

Georgieva added that the decrease in interest rates and the appreciation of the dollar will have a devastating impact on several economies, such as Chad, Ethiopia, Zambia, Ghana, Lebanon, and Sri Lanka.

It's very important for the IMF to solve the debt in those countries, she stressed, noting that "at the IMF, we are working very hard to press for debt resolution for these countries."

Kristalina Georgieva, the Managing Director of the IMF says "2023 will be a difficult year for the world."

The silver lining, she says, is that it can be used to transform economies and accelerate change for climate and growth. #GhanaNewsAgency #GNA #IMF pic.twitter.com/ye4rU3pRPw
— Ghana News Agency (@GHANANEWSAGENCY) December 30, 2022

Speaking on matters related to the war in Ukraine, Georgieva said the IMF is working on providing support for the country.

"So far, out to the international financial institutions, we have provided the largest amount of financing for Ukraine, 2.7 billion dollars in emergency financing, and we are working for 2023 to be a significant part of the support for Ukraine," she said.

She further noted that Europe is now more than determined to become energetically independent from Russia despite the prospect of having to endure a harsh winter due to high energy bills.

On December 27, Austria's Defense Minister Klaudia Tanner said several parts of the European Union will inevitably face power outages due to the Ukraine war.

"The possibility of blackouts in parts of the European Union is very high. The question is not whether they will happen but when they will happen," Tanner told the German newspaper, Die Welt.

She further explained how the war that broke out in Ukraine made power outages more likely and exacerbated their risk, claiming that so-called "Russian hackers" had the European electrical grid in their sights.

"We should not pretend that it is only a suggestion. Austria and Europe must prepare for blackouts," the Minister stressed.