The seal of the International Monetary Fund (IMF) is displayed at its headquarters in Washington, DC, on April 12, 2024, ahead of the IMF/World Bank 2024 Spring Meetings (Mandel Ngan | AFP | Getty Images).
Nine European countries voiced their objections on Friday to the IMF’s initiative to resume missions to Russia, claiming that such a move would tarnish the Fund’s reputation by re-engaging with a country that has initiated an invasion.
Following Russia’s full-scale invasion of Ukraine in February 2022, the IMF halted its annual consultations with Russia—standard practice for all member nations of the Washington-based financial institution.
However, on September 2, Aleksei Mozhin, the IMF’s Russian executive director, informed Reuters that the Fund would recommence online consultations on September 16, followed by an IMF delegation’s visit to Moscow for meetings with Russian officials until October 1.
In a letter addressed to IMF Managing Director Kristalina Georgieva, finance ministers from Lithuania, Latvia, Estonia, Finland, Sweden, Iceland, Denmark, Norway, and Poland conveyed their strong disapproval of the IMF’s plans. Georgieva is currently attending a meeting of EU finance ministers and central bankers in Budapest, where she will be queried about the IMF’s intentions, according to EU officials.
One senior euro zone official questioned the rationale behind the IMF’s recommendations to Russia, suggesting that it could be perceived as guidance on managing a wartime economy.
The letter argued that Russia, characterized as an aggressor nation, should not benefit from the IMF’s counsel. It warned that continued IMF plans could reduce the willingness of donor nations to support Ukraine through IMF initiatives, thereby eroding trust in the organization. The senior official indicated that donors might seek alternative institutions like the World Bank or the European Bank for Reconstruction and Development.
Additionally, the letter criticized the IMF’s plans on the grounds that any data provided by Russia would likely be censored to misrepresent the country’s economic resilience against Western sanctions, compromising the accuracy of the IMF’s assessments. The letter also stated that Russia could exploit the mission for propaganda purposes, harming the Fund’s reputation.
The nine countries urged the IMF to refrain from resuming cooperation with Russia and to adhere to the purposes and principles of the UN Charter. They called on all international financial institutions, including the IMF and its management, to avoid engaging with the aggressor state while Russia continues its military actions against Ukraine.
In response, the IMF stated on Thursday that its planned mission to Russia aligns with its regular obligations and those of Russia as a member country. The IMF’s last annual mission to Russia occurred in November 2019, prior to the COVID-19 pandemic. No IMF missions have taken place in Russia since the start of the conflict in Ukraine.
After Russia’s invasion of Ukraine, numerous Western nations suggested Russia’s expulsion from the IMF, but this proposition faced challenges due to opposition from other influential members, such as China and India.
