The agency says it plans to restart its economic review missions in the country that it had stopped over the Ukraine conflict
A number of EU nations have confronted the International Monetary Fund (IMF) over the agency’s decision to restart trips to Russia, Politico reported on Friday, citing a letter the countries allegedly wrote to the fund’s chief Kristalina Georgieva.
Earlier this month, the IMF announced plans to conduct an annual review of Russia’s economy. In order to do that, the agency will start virtual discussions with Russian authorities on economic issues on September 16, and send its staff to the country for in-person consultations shortly after that.
The announcement attracted attention from Kiev’s Western backers, as this would be the first time the US-based institution engaged with Russia since the start of the Ukraine conflict. In a letter reportedly seen by Politico, the finance ministers of Lithuania, Estonia, Latvia, Sweden, Finland, Denmark, Norway, Iceland and Poland claimed that the agency would be sending the wrong message to the global community if it goes through with its plan.
The authors of the letter reportedly alleged that IMF visits to Russia “will undoubtedly be used for propaganda purposes by the Russian regime,” and warned the agency of “substantial reputational risks” if it resumes work with the sanctioned country.
Commenting on the situation at a press briefing on Thursday, IMF spokeswoman Julie Kozack said the annual economic reviews, also known as Article IV consultations, was part of “a mutual obligation” between the fund and its members, recorded in the IMF articles of agreement.
Kozack signaled that the absence of IMF consultations with Russia since 2021 had not been intentional on the part of the agency, but stemmed from the economic situation in the country, which “has been exceptionally unsettled” since the outbreak of the Ukraine conflict in 2022.
“Now that the economic situation is more settled, Article IV Consultations with Russia are resuming… in line with the obligations of both the Fund and the member country,” the spokeswoman said. She made no mention of any criticism that the fund’s decision may have sparked.
Russian Finance Minister Anton Siluanov said last month that the country’s economy had been exceeding expectations in terms of growth. In an interview with TV channel Russia-24, he revealed that Russian GDP growth in the first half of the year had amounted to 4.7%, “a very good figure,” despite numerous economic restrictions placed on the country by the West. According to Siluanov, the ministry currently expects the economy to expand by 3.9% by year’s end.
The World Bank previously said Russian economic growth had defied Western sanctions, while the IMF predicted in April that the Russian economy would grow faster than all advanced economies in 2024.
