Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Russia faces lasting consequences from Ukraine war, World Bank chief says

Economy Mar 04, 2022 02:36PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. A view shows a building, which city officials and locals said was damaged by recent shelling, as Russia's invasion of Ukraine continues, in Kharkiv, Ukraine March 4, 2022. REUTERS/Oleksandr Lapshyn 2/2

By David Lawder and Andrea Shalal

WASHINGTON (Reuters) -Russia's war in Ukraine has "horrified" the World Bank's shareholders and will have lasting consequences for Russian President Vladimir Putin and Russia's standing on the global stage, the global lender's president said on Friday.

World Bank President David Malpass told Fox Business Network that China's reaction to the war and the Western sanctions imposed on Moscow would be influential in determining how Russia's future trade relationships develop.

"There's a global outpouring in favor of Ukraine, and that will have lasting consequences, whatever the outcome of the war," Malpass said, citing what he called "a very clear focus on Putin being the source of the problem."

He listed previous Russian invasions, including of Hungary in 1956, Czechoslovakia in 1968 and Georgia in 2008 and the annexation of the Crimea region of Ukraine in 2014, but said the current war was far broader.

"This is an order of magnitude worse in terms of the decimation and the deaths that are occurring, so I think there will be lasting consequences," he said.

SPEEDING FUNDS TO UKRAINE

Malpass said he would speak with Ukrainian President Vododymyr Zelenskiy later on Friday and planned to submit to the World Bank's board on Friday a loan package for Ukraine that has been expanded with country contributions and has been coordinated with "people that are in bunkers in Ukraine."

Reuters reported on Thursday that the package had grown to 460 million euros ($503 million). Malpass said the goal was to get the money to Ukraine as early as next week.

Malpass, a former U.S. Treasury official, said the financing for Ukraine would be "for payment of the ongoing - call it war effort - the ongoing development effort and the medicine efforts that they need to do as a government."

Russia's global financial isolation intensified on Friday as the London Stock Exchange suspended trading in its last Russian securities and as Europe, the United States and othe countries continued to roll out financial sanctions on Russia.

Malpass said the raft of sanctions were having a significant impact on Russia's interactions with financial markets, while raising questions about its dependence on China and delivering a huge supply shock to world energy and food markets.

China, a major shareholder in the World Bank, had to be "horrified at where this is developing," Malpass said, adding, "That'll be an important issue in how world trade develops. They buy oil from Russia when the sanctions are in place, but can the companies really remain part of the world system when they're so engaged with Russia? We'll have to see how that evolves."

Russia faces lasting consequences from Ukraine war, World Bank chief says
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email