empty
27.02.2022 11:50 PM
The IMF is rapidly "repainting": energy remains a sore spot in Europe

Managing Director of the International Monetary Fund Kristalina Georgieva, in her speech at the Georgetown Law School event dedicated to Black History Month on Friday, shared her view on the Ukrainian-Russian conflict. She emphasized that international financial sanctions against Russia will only worsen the economic consequences of the war in Ukraine, which are primarily manifested through inflation of prices for energy and agricultural products.

The IMF is rapidly "repainting": energy resources remain a sore spot

The Bulgarian-born economist noted that increased uncertainty in financial markets caused by the conflict could cause "an outflow of capital from emerging markets, whereas we need the exact opposite — more financing goes there."

She also said that increased regional tensions could affect economic activity in countries and regions surrounding Ukraine, such as Poland and the Caucasus.

"We have already seen actions taken in terms of sanctions that will exacerbate the economic consequences of this crisis and will primarily be transmitted through energy prices, as well as grain, reinforcing the growing concern about inflation and how it can be reduced," she said.

Russia is one of the world's largest oil exporters, as well as a major grain exporter, along with Ukraine, whose Black Sea ports are now closed to shipping.

Georgieva also said she was worried about her brother, who is married to a Ukrainian woman and is currently in Kharkiv, Ukraine's second largest city, where fierce fighting is taking place.

"When I talked to him, I was very worried for everyone — for his family, of course, but also for everyone there — to wake up to the sounds of bombing and not know what will happen next," Georgieva said.

Obviously, the energy issue remains a vulnerable point in the European strategy, forcing the politicians of the European Parliament to abandon tough sanctions. On the other hand, too high inflation contributes to this. So, on Friday, February 25, a report on consumer prices in France was published, the figures of which exceeded economists' expectations.

Egor Danilov,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Market News Digest for March 19

Nvidia, which should have been celebrating the start of its annual developer conference, saw its shares fall instead. Tesla, still reeling from Elon Musk's latest adventures, took a hit from

Natalia Andreeva 10:52 2025-03-19 UTC+2

Markets in fear: Nasdaq plunges 1.71% while gold hits record highs

Tech stocks sink as gold surges to a new record Nvidia dropped as the conference annual of software developers kicked off. Tesla fell after RBC cut its price target

09:35 2025-03-19 UTC+2

Markets in fear: Nasdaq plunges 1.71%, gold hits record highs

Nvidia falls as annual software developers conference begins Tesla falls after RBC cuts price target Gold hits all-time high of $3,038.90 an ounce Alphabet falls after $32 billion deal

Thomas Frank 06:48 2025-03-19 UTC+2

US Market News Digest for March 18

February data revealed a 0.2% increase in US retail sales, signaling robust consumer activity. However, New York's manufacturing activity declined in March, pointing to localized economic weakness. Despite these mixed

Ekaterina Kiseleva 13:51 2025-03-18 UTC+2

EUR/USD Pauses as S&P 500 Forecasts Worsen – How to Find Balance?

The global market is currently struggling to find balance in key currency pairs and stock instruments. This is particularly challenging given the recent decline of the euro and the weakness

Larisa Kolesnikova 07:52 2025-03-18 UTC+2

Global Market Dynamics: China, the US and AI Are Driving New Trends

Intel rises after a report that the new CEO plans to reorganize manufacturing and artificial intelligence operations. February retail sales rise 0.2%. New York manufacturing activity fell in March. Hong

05:16 2025-03-18 UTC+2

Global Markets in Action: China, US, and AI Set New Trends

Intel Gains After New CEO Plans AI Manufacturing and Operations Overhaul February Retail Sales Up 0.2% New York Manufacturing Activity Falls in March Hong Kong Stocks, Kiwis Gain on China

Thomas Frank 04:59 2025-03-18 UTC+2

US Market News Digest for March 17

US markets rally on Friday: S&P 500 gains 2.1%, Nasdaq Composite rises 2.6% The US stock market ended the week on a high note, as if the recent turbulence never

Natalia Andreeva 14:04 2025-03-17 UTC+2

Fed against trade war. Can monetary policy rescue economy?

The US stock market continues to experience turmoil, driven by uncertainty surrounding Donald Trump's stance on import tariffs. Investors are eagerly awaiting the Federal Reserve's meeting next week, hoping

13:23 2025-03-17 UTC+2

Fed vs. Tariff War: Will Monetary Policy Save the Economy?

The U.S. stock market continues to be shaken by Donald Trump's uncertain stance on import tariffs. Investors are eagerly awaiting next week's Federal Reserve meeting, hoping for hints

Thomas Frank 10:07 2025-03-17 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.