Horror! IMF Outlines Sanctions For Russia If Excluded From The World Economy

Ukrainian civilians affected by military invasion (Photo: Twitter @Osinttechnical)

JAKARTA – The International Monetary Fund (IMF) considers that economic sanctions against Russia for its invasion of Ukraine are increasingly unavoidable.

IMF Managing Director Kristalina Georgieva said that in the near future sanctions will be announced and lead to the working system of the Central Bank of the Russian Federation.

"This will result in Russia being severely restricted in accessing international reserves (funds) to support its currency and financial system," he said in an official statement on Sunday, March 6, Indonesian time.

According to Kristalina, international sanctions on Russia's banking system and the exclusion of a number of banks from SWIFT have significantly disrupted the country's ability to accept cross-border export and import payments.

"Although it is too early to predict the full impact of these sanctions, we have seen a sharp decline in asset prices as well as the exchange rate of the ruble (Russian currency)," he said.

Kristalina added that countries with very close economic ties to Ukraine and Russia are at risk of supply shortages and disruptions.

One of the closest parties to the impact is Moldova, which has requested additions and repetitions of IMF-supported (debt) programs to help meet the costs of the current crisis.

"In this regard, we from the IMF have actively discussed options with the Moldovan authorities," he said.

For information, "Russia's special military operation to Ukraine" is believed to have an effect on the region and countries that have IMF-supported programs, especially those with high vulnerability status.

"The IMF will advise our member countries on how to calibrate their macroeconomic policies to manage spillovers, including through trade disruptions, food and other commodity prices, and financial markets," he explained.

Furthermore, Kristalina said that her party would continue to monitor the developing situation, and provide timely policy advice, financial support and technical assistance to member countries.

"We are committed to assisting members as needed, in close collaboration with our international partners," said Kristalina.