At the headquarters of the International Monetary Fund (IMF) in Washington, DC, preparations for the 2024 IMF/World Bank Spring Meetings are underway. The IMF’s seal was seen prominently displayed on April 12, 2024.
On Friday, nine European countries expressed strong opposition to the IMF’s plans to reinstate missions to Russia, arguing that engaging with a nation that has invaded another could harm the Fund’s reputation. Since Russia’s full-scale invasion of Ukraine in February 2022, the IMF had ceased its annual consultations with Russia, a standard procedure for all member nations of the Washington-based lender of last resort.
However, on September 2, IMF’s Russian executive director, Aleksei Mozhin, informed Reuters that the IMF would recommence online consultations on September 16, followed by an IMF delegation visit to Moscow for meetings with Russian officials until October 1.
In a letter addressed to IMF head Kristalina Georgieva, the finance ministers of Lithuania, Latvia, Estonia, Finland, Sweden, Iceland, Denmark, Norway, and Poland expressed their profound dissatisfaction with these plans. Georgieva, who is attending a meeting of EU finance ministers and central bankers in Budapest, is expected to be questioned about the IMF’s intentions.
The letter voiced concerns about the nature of recommendations the IMF might provide to Russia and questioned whether advice would pertain to managing a war economy. It stressed that as an aggressor, Russia should not benefit from the IMF’s guidance. Additionally, the letter suggested that if the IMF proceeds with its plans, donor countries might hesitate to support Ukraine through IMF initiatives, potentially eroding trust in the Fund. The letter also mentioned the possibility of donors opting for other institutions, such as the World Bank or the European Bank for Reconstruction and Development.
Highlighting concerns over data integrity, the finance ministers asserted that any economic data provided by Russia would likely be manipulated to show resilience against Western sanctions, thus rendering the IMF’s assessment inaccurate. The letter also warned that Moscow could utilize the mission for propaganda purposes, thereby tarnishing the IMF’s reputation.
The nine countries called on the IMF to refrain from resuming cooperation with Russia and to adhere to the purposes and principles of the UN Charter. They urged all international financial institutions, including the IMF, to avoid activities involving the aggressor state and to suspend dialogue as long as Russia continues its aggressive actions against Ukraine.
In response, the IMF stated that its planned visit 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, before the onset of the COVID-19 pandemic, and there have been no missions since the beginning of Russia’s conflict with Ukraine.
Following Russia’s invasion of Ukraine, many Western nations discussed the potential expulsion of Russia from the IMF. However, this proved complex due to resistance from other significant members, including China and India.
