The International Monetary Fund (IMF) governing board failed to reach agreement on a statement calling on Russia to end its war in Ukraine at IMF and World Bank meetings in Washington, where finance ministers and central bank chiefs are discussing a cap on the price of Russian oil.
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Nadia Calvino, Spain’s economy minister, told a press conference on Oct. 14 that Russia had again blocked the release of a joint statement at a meeting of the International Monetary and Financial Committee.
Calvino, chair of the committee, instead issued a statement acknowledging that the COVID-19 pandemic and the war in Ukraine were “severely weighing on economic activity” with a significant impact on livelihoods.
There was a “very strong call” throughout the week of meetings for Russia to end its war on Ukraine, Calvino said.
“War is the most important element that slows down growth and generates inflation, volatility, energy and food insecurity and uncertainty,” she told a conference. Press.
US Treasury Secretary Janet Yellen echoes his statement, telling reporters that many of the diverse and difficult challenges facing the global economy “stem from Russia’s terrible war in Ukraine and the continued recovery from the pandemic.”
Asked about progress in setting a price cap for Russian oil, she said no decision had been made but a coalition of countries, including the G7, the European Union and Australia , undertook to decide what the ceiling price would be.
Once adopted, coalition members will ensure that insurance, financial and other service providers can only be provided if the purchase of Russian oil is at a price below the ceiling.
Yellen called it “an innovative policy that aims to reduce Putin’s income while keeping Russian oil flowing to world markets at low prices.”
She also said a price cap would help stabilize global energy prices and provide developing countries with greater leverage to negotiate better prices for Russian oil.
Countries are currently considering several relevant benchmarks to decide on the price cap, including the cost to Russia of producing oil.
Also on October 14, countries that have imposed economic restrictions on Russia hold a meeting to assess the impact of the measures.
US Treasury Undersecretary Wally Adeyemo said restrictions on Russia’s military-industrial complex have had a direct effect on the battlefield.
“Together, our collective actions have rendered the Russian military-industrial complex unable to produce and maintain critical equipment for operations in Ukraine,” Adeyemo said.
He said the collective impact of sanctions and other measures has prevented Russia from accessing advanced technologies and international financial systems. This has hampered the ability of Russia’s defense industry to produce weapons and replace those destroyed during the war, he said.
He also said that Russia lacked microelectronics essential to its military-industrial complex and that Russian officials were concerned that they did not have enough foreign components.
Two of Russia’s biggest microelectronics makers had to temporarily halt production due to a lack of critical foreign technologies, he said.