EU countries to question IMF chief over relations with Russia
The IMF head to be asked about contacts with Moscow (Getty Images)
Several European Union countries intend to challenge the International Monetary Fund’s plans to resume economic relations with Russia for the first time since the invasion of Ukraine, citing Bloomberg.
According to informed sources, at a meeting of EU envoys on September 11, France, Belgium, and Poland, along with several Baltic and Northern European countries, expressed surprise at the IMF's (International Monetary Fund) decision earlier this month to renew annual economic reviews with Moscow.
A representative from Lithuania said that the country plans to raise this issue directly with IMF Managing Director Kristalina Georgieva during a luncheon with European finance ministers on September 13 in Budapest, sources revealed.
A diplomat added that they believe this move offers economic support and a semblance of legitimacy to President Vladimir Putin, as the EU and the US strive to isolate Russia.
The Lithuanian representative also noted that the first mission of a major international organization to Russia since the invasion in February 2022 could be used by Moscow as propaganda to show that its international isolation is weakening, the sources said.
According to the sources, the EU also plans to send a letter to Georgieva, expected to be signed by several EU members, expressing concerns over the process, which could potentially lead to the normalization of relations with Moscow.
IMF mission
Earlier this week, the IMF announced that it was resuming annual reviews of Russia’s economy, citing a more stable economic situation in the region. The review, known as an Article IV assessment, is a "mutual obligation" of the IMF and its members, the IMF stated.
"Article IVs are not an option, but an institutional obligation for the fund and are carried out for the benefit of the whole of the membership," the IMF said in response to emailed questions.
"We now believe that we are in a situation where we can provide economic analysis," Alfred Kammer, head of the IMF’s European department, said in an interview.
Both the IMF and Russia declined to clarify who initiated the resumption of the reviews.
US Treasury Secretary Janet Yellen said in an interview last week that she does not oppose the annual review but would be against any financial support from the IMF to Moscow. The Treasury Department declined further comment. Russia has not sought IMF assistance since 2000.
The IMF said that its staff would begin virtual discussions with Russian authorities on September 16, followed by in-person meetings. This visit is scheduled for October 1, and one source added that the IMF had attempted to persuade Russia to hold the meetings in a third country.
This development comes shortly after Ksenia Yudaeva, former First Deputy Governor of the Central Bank of Russia, was appointed by Moscow as its representative on the IMF Board of Directors. She will replace Alexei Mozhin, who had held the position since the 1990s.
