UDEST, Sept. 13 — A coalition of nine European countries has expressed strong objections to the International Monetary Fund’s (IMF) plan to resume missions to Russia, arguing that the move could tarnish the IMF’s credibility. The IMF had previously halted its annual consultations with Russia following Moscow’s full-scale invasion of Ukraine in February 2022.
On September 2, Aleksei Mozhin, Russia’s executive director at the IMF, announced that the Fund would recommence online consultations with Russia on September 16. This will be followed by an IMF delegation visiting Moscow from September 16 to October 1 to engage with Russian officials.
In a letter to IMF Managing Director Kristalina Georgieva, finance ministers from Lithuania, Latvia, Estonia, Finland, Sweden, Iceland, Denmark, Norway, and Poland voiced their discontent. They argued that resuming dialogue with a nation involved in aggressive military actions would compromise the IMF’s reputation and undermine its mission.
The ministers are expected to raise their concerns during Georgieva’s attendance at a meeting of EU finance ministers and central bankers in Budapest. Questions have been raised about the nature of the IMF’s recommendations for Russia, with one eurozone official sarcastically asking whether the guidance would pertain to managing a war economy.
The letter highlights that allowing Russia to benefit from IMF advice could erode support from donor countries for Ukraine and potentially lead them to seek assistance from other institutions like the World Bank or the European Bank for Reconstruction and Development. There are also concerns that any data Russia provides could be manipulated to present a misleading picture of its economic resilience.
The letter further accuses Russia of potentially using the IMF’s mission for propaganda, which could damage the Fund’s standing and credibility. The European nations have urged the IMF to reconsider its engagement with Russia and adhere to the principles of the UN Charter, which condemns acts of aggression.
In response, the IMF stated that its planned visit to Russia aligns with its standard obligations and Russia’s commitments as a member country. The last IMF mission to Russia occurred in November 2019, before the COVID-19 pandemic and the onset of the war in Ukraine.
Although some Western nations have discussed the possibility of expelling Russia from the IMF, such measures have been hindered by the reluctance of other significant members like China and India to support such a move.
Nisham Ismail