Russia-Ukraine war will have ‘severe impact’ on global economy, warns IMF

The International Monetary Fund warned Russia’s war with Ukraine and the subsequent sanctions imposed upon President Vladimir Putin’s country will have a “severe impact” on the global economy.

“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.

“The ongoing war and associated sanctions will also have a severe impact on the global economy,” it warned, as the sanctions on Russia will also have a substantial impact on financial markets.

It said price shocks would be felt worldwide, and authorities should provide fiscal support for poor households for whom food and fuel made up a higher proportion of expenses, adding that the economic damage would increase if the war escalated.

Meanwhile, President Vladimir Putin warned that Ukrainian statehood is in jeopardy and likened the West’s sanctions on Russia to “declaring war”. Ukrainian president Volodymyr Zelenskiy, on the other hand, made a “desperate plea” to US senators on Saturday to send more planes to help the country battle Moscow invasion.

At least 351 civilians are confirmed to have been killed in Ukraine since Russian troops invaded on Feb. 24, and another 707 wounded, U.N. monitoring mission informed on Saturday.