IMF urges adherence to law in handling of Russian assets to protect intl monetary system
The International Monetary Fund (IMF) is closely monitoring discussions on the possibility of using frozen Russian assets, including options that involve using EuroClear cash balances received from them, while maintaining Russia's basic requirements, said Julie Kozack, the Fund's communications director.
"Management have consistently advised that any action relating to the use of Russia's immobilized assets should respect international and domestic law and not undermine the functioning of the international monetary system," she said this at a traditional briefing at the Fund on Thursday, according to an Interfax-Ukraine correspondent.
"And we're assured that Russian policymakers appreciate these important considerations," Kozack added.
She noted that the Fund welcomes the lively discussions in Europe about supporting Ukraine, provided that the support is consistent with restoring the country's debt sustainability.
She said that obtaining appropriate financing guarantees from donors is a condition for the Fund to launch a new four-year Extended Fund Facility (EFF) program. Ukraine requested this program in September, and the Fund's management agreed to it in November.
Kozack recalled that the current financing gap over the period of the potential new program is estimated at $136.5 billion. In particular, the residual financing gap from 2026 to 2027 is $63 billion.
"So our message is that prompt action by donors is indispensable to assist Ukraine in financing its large fiscal and external financing needs and to avoid liquidity strains during the continuing war," the Fund’s Communications Director said.
