IMF to consider immediate $1.4 billion bailout for Ukraine amid Russian invasion

In an attempt to support Ukraine amidst the ongoing burgeoning Russian assault, the International Monetary Fund (IMF) executive board announced a potential disbursement of emergency funding worth $1.4 billion to Kyiv. The monetary aid will come in addition to $700 million allotted to Ukraine in December and $2.7 billion in August last year, IMF Managing Director Kristalina Georgieva said on Tuesday while speaking at a forum hosted by Financial Times.

Currently, the IMF staff are in discussion with Ukrainian authorities to ensure management of the economic crisis that has resulted from the hostile Russian operations. She also informed that the officials are in talks to adequate response deemed necessary to the related crisis and need to mobilise financial support and resources. "The unthinkable happened with Russia's attack on Ukraine. It is tragic and it is also consequential," Georgieva said.

Too early to predict impact of Russian invasion on global economy: IMF

When asked about the intensity of the impact of the Russia-Ukraine war on the global economy, the IMF chief informed that monetary fund is also considering "best support" for Ukraine's immediate neighbours, including Moldova, which sought help from the international lender. However, she revealed it is too early to predict the impact of the war on global economy and the magnitude of the blow that the Russian economy is expected to face amid the crippling sanctions imposed on Russian entities, banks, and other financial institutions. She emphasised that although it is not clear how much the Russian economy could shrink, a recession was "a very likely outcome."

Meanwhile, the World Bank on Monday approved a $723 million package of loans and grants for Ukraine. According to the international financial institution, the loan is aimed at supporting the government budget of the embattled nation.

UK to ban oil imports from Russia

Adding to the sweeping sanctions previously imposed on Russia, UK PM Boris Johnson promised that the UK will stop importing oil from Russia. Addressing the House of Commons in the UK, he assured that London will provide weapons and every other assistance to Ukraine until the Russian assault on Ukraine ends. "President Volodymyr Zelenskyy is standing firm for democracy and for freedom. It is his righteous defense, I believe he has moved the hearts of everybody in this house. At this moment, ordinary Ukrainians are defending their homes and their families against the brutal assault, and their actions are inspiring millions by their courage and their devotion, and I think today, one of the biggest boasts in the free world is the young Ukrainians saying 'I am a Ukrainian'," Johnson said during his address to the House. He was seconded by the British Energy and Industrial Strategy Minister, who said the UK will "phase out" dependence on Russian oil imports by the end of 2022.

To note, the plethora of penalties on Russian trade, banks, and other sectors come as Russian President Vladimir Putin on February 24 attacked Ukraine's sovereignty and territorial integrity. However, Putin has over the time defended his decision, saying that he intends to "demilitarise and denazify" Ukraine and stop "genocide" in Donbass. The war resulted in violations of the Minsk Accord by Moscow after it unilaterally identified two of Ukraine's breakaway rebel-held regions. Ever since, arbitrary bombings by Russian armed forces have inflicted heavy damage on Ukrainian life and property, killing thousands and damaging civil and commercial infrastructure. The 14-day-long running war has also pushed nearly 1.5 million out of the war-torn ex-Soviet nation.  

(Image: AP)