Exporting oil to India and China will not have a “long-term effect” on the Russian economy, believes Kristalina Georgieva.
Russia’s economic prospects after 2023, against the backdrop of the war it is waging against Ukraine, are “absolutely devastating.” In particular, the Russian economy will shrink by at least 7%. This was said by the head of the International Monetary Fund (IMF), Kristalina Georgieva, reports The Telegraph.
“When you take our forecasts for the medium term, they mean that the Russian economy will shrink by at least 7%,” he said.
The Russian economy will suffer over time due to the migration of workers, the denial of access to technology and the imposition of sanctions against the country’s energy industry, the head of the IMF emphasizes.
Although Russia was able to funnel some of its oil sales outside the European market to China and India, he said, this would not have a “long-term impact” on the country’s economy.
“We don’t see Russia getting any benefit from what it has done to Ukraine and to itself,” Georgieva concluded.
As you know, on December 5, 2022, the EU embargo on offshore oil supplies from the Russian Federation was implemented. The G7 countries, the EU and Australia introduced a price ceiling for Russian oil delivered at sea at the level of $60 per barrel for their subordinate vessels and territories.
From February 5, 2023, similar restrictions on the supply of petroleum products from Russia began to operate.
In Russia, oil and gas revenues are expected to fall
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.