Due to the conflict between Russia and Ukraine, the International Monetary Fund (IMF) announced on Saturday that it would bring Ukraine’s request for $1.4 billion in emergency financing to its board for approval as soon as next week. IMF Executive Board members met on March 4 under the chair of Managing Director Kristalina Georgieva and discussed the economic impacts of the war in Ukraine and how fast-tracked financial assistance might be possible for affected countries. The global lender said it has seen a tragic loss of life and human suffering in Ukraine, which has led to more than 1 million refugees fleeing to neighbouring countries. It has also triggered unprecedented sanctions against Russia.
“While the situation remains highly fluid and the outlook is subject to extraordinary uncertainty, the economic consequences are already very serious,” the IMF said in a statement.
As well as the ongoing war and associated sanctions, the sanctions on Russia will also have a significant impact on financial markets, spilling over into other countries.
According to the statement, “while it is very difficult to assess funding needs specifically at this stage, it is already apparent that Ukraine faces significant costs for recovery and reconstruction.”. It advised monetary authorities to carefully monitor the pass-through of rising international prices to domestic inflation so that appropriate policy measures could be taken. Authorities should provide financial assistance to poor households whose expenses are higher due to food and fuel if the war escalates
On Saturday, the Russian Defence Ministry declared a partial ceasefire in order to allow humanitarian corridors out of Mariupol and Volnovakha. According to Russian news agencies, the Russian defence ministry declared a ceasefire at 1000 Moscow time (0700 GMT) and opened humanitarian routes for civilians to leave Mariupol and Volnovakha.
Due to Russian forces resuming shelling in Mariupol, evacuation efforts in the city had to be halted. Since the Russian invasion of Ukraine on February 24, the United Nations Human Rights Office has confirmed that 351 civilians have been reported killed and 707 injured.
As of February 24, Russia launched attacks on Ukraine from three directions, including land, sea, and air. The war was declared after Russia recognized two breakaway regions in eastern Ukraine as independent and ordered its armed forces to launch a “peacekeeping operation” in the region.