EU countries concerned about IMF plans to resume cooperation with Russia, calling it economic aid to Putin

A number of European Union countries are concerned about the decision by Kristalina Georgieva, Head of the International Monetary Fund (IMF) to plan to engage with Russia for the first time since its full-scale invasion of Ukraine. Source: European Pravda, citing Bloomberg Details: During a meeting of EU ambassadors on Wednesday, France, Belgium, Poland, and several Baltic and Nordic nations expressed surprise at the IMF's recent decision to resume annual economic reviews with Moscow, according to sources familiar with the discussions.

According to sources, a Lithuanian official stressed that the country intends to address the issue directly with Kristalina Georgieva during a lunchtime meeting with European finance ministers in Budapest on Friday.

The diplomat added that they view the decision as proposing economic aid and a semblance of legitimacy to Russian ruler Vladimir Putin, counter to EU and US efforts to isolate Russia. The Lithuanian representative also said during Wednesday's meeting that the first mission by a major international organisation to Russia since the full-scale invasion in February 2022 could be used by Moscow as propaganda to show that its international isolation is easing.

The finance ministers of the Nordic and Baltic countries and Poland sent a letter to Georgieva expressing concern over the process, which they believe is leading to the normalisation of relations with Moscow. Earlier this week, the IMF announced it would resume its annual reviews of Russia's economy, citing improved regional economic stability.

This review, known as an Article IV review, is considered a "mutual obligation" between the fund and its members. "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 its response. The IMF announced that its staff will commence online discussions with Russian authorities on 16 September, followed by an in-country visit for face-to-face meetings.

According to sources, the visit is set to start on 1 October.

One source noted that the IMF is seeking to persuade Russia to hold the meetings in a third country.

Background:

• The finance ministers of eight EU nations recently stated that Russia is spreading a false narrative about the strength of its economy and that Western sanctions have actually hit its war machine.
• In June, the EU adopted the latest and 14th package of economic and individual restrictive measures against Russia.

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