IMF, World Bank Chiefs Warn of Ukraine War’s Global Impacts

Chiefs of the World Bank and the International Monetary Fund (IMF) expressed intentions to help Ukraine, while warning that the Russian invasion will have significant impacts to the global economy.

IMF Managing Director Kristalina Georgieva said on Thursday that she was “deeply concerned” about the situation in Ukraine, adding that the conflict “adds significant economic risk for the region and the world.”

“We are assessing the implications & stand ready to support our members as needed,” Georgieva said in a tweet.

The IMF is currently deploying US$2.2 billion in aid for Ukraine under a loan program set to end in June.

Meanwhile, World Bank President David Malpass said in a statement that the development lender is “horrified by the shocking violence and loss of life as a result of the events unfolding in Ukraine.”

“The devastating developments in Ukraine will have far-reaching economic and social impacts,” Malpass warned in the statement, adding that the World Bank stands ready to provide immediate support to the country.

The U.S. and European powers are preparing to pile up economic sanctions against Russia in a bid to pressure Moscow.

Analysts warn, however, that the sanctions could weigh on a global economy that is only recovering from the COVID-19 pandemic, along with supply chain woes. 

Ukraine and Russia together are major wheat exporters, while Russia alone pumps about 10 percent of the world’s oil.

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