The International Monetary Fund (IMF) is set to resume its annual economic consultations with Russia, marking the first time since 2021. This decision has sparked criticism from several European nations. The consultations, which were suspended following Russia’s invasion of Ukraine in 2022, will begin virtually on September 16 and will be followed by in-person meetings in Moscow later this month. IMF spokesperson Julie Kozak confirmed this during a press briefing on September 12, stating that the decision was based on the more stable economic situation in Russia.
Russia’s central bank has also confirmed the resumption of consultations with the IMF. However, Lithuania, Latvia, Estonia, Finland, Sweden, Iceland, Denmark, Norway and Poland have expressed strong dissatisfaction with this move. The finance ministers of these countries sent a letter to IMF head Kristalina Georgieva expressing their concerns.
The IMF and all its member countries have an agreement that allows for periodic economic assessments conducted by IMF experts. These assessments were put on hold in Russia following the launch of what the Kremlin refers to as a “special military operation” in Ukraine.
Kozak explained that due to the exceptionally unsettled economic situation since the invasion of Ukraine in 2022, it has been challenging to conduct Article IV consultations with Russia. However now that things have stabilized somewhat economically speaking; officials from the Washington-based organization will travel to Moscow to meet various stakeholders before publishing an assessment of Russia’s economic health and policies.
Despite facing significant sanctions from Western nations since its invasion of Ukraine,Russia’s economy has remained resilient. Recent figures from Moscow’s Federal State Statistics Service show that it grew by 4 percent annually in Q2 2023 due partly to increased manufacturing activity and military production.
However,some economists question official Russian economic data integrity as reports suggest clandestine methods are being used by Russia for oil exports while circumventing sanctions.
In their letter opposing Article IV mission,the finance ministers claimed any data provided by Moscow would be censored making assessment inaccurate.They urged international financial institutions including IMF not resume dialogue until aggression against Ukraine ceases
Russia’s Finance Minister Anton Siluanov expects GDP growth rate at around 3.9% for year end-2024 up from previous estimate at around 2.8% made earlier this year.
