DISINFO: The IMF opposed the transfer of Russian assets to Ukraine
SUMMARY
The International Monetary Fund believes that the West's plans to use Russian assets will undermine the world's monetary system.
RESPONSE
Recurring pro-Kremlin disinformation aimed at deterring nations from seizing Russia's frozen assets to fund Ukraine's reconstruction by warning of an imminent economic collapse. The narrative also aims at undermining Ukraine’s cooperation with the International Monetary Fund.
The disinformation is based on a press conference by Julie Kozack, Director of the Communications Department of the International Monetary Fund, on May 16, 2024. Answering a question from journalists about the possible use of Russian assets to support Ukraine, Kozack noted that the International Monetary Fund insists on a thorough study of this decision and its consequences.
“So, our position on the issue of Russian assets remains unchanged, which is that it is for the relevant courts and jurisdictions to determine. But what is important for the Fund of course, for us, is that any action that is taken has sufficient legal underpinnings and does not undermine the functioning of the international monetary system.” Kozack said.
An identical point of view was expressed on behalf of the International Monetary Fund on May 7, 2024 by First Deputy Managing Director Gita Gopinath. She said the Fund was monitoring discussions about the potential use of Russian state assets to support Ukraine: “While this is for relevant courts and jurisdictions to determine, for the IMF, it is important that any action has sufficient legal underpinnings and does not undermine the functioning of the international monetary system.” Gita Gopinath said.
In January 2024, the IMF noted that the decision to transfer Russian assets in favour of Ukraine should be made by the countries themselves where Russia’s frozen funds are located. The IMF's assessments will depend on what specific actions will be taken by these states. Since there is no final decision yet, there are also no comments about any economic impact on the international monetary system or the economies of individual countries.
In response to Russian aggression against Ukraine, the US, EU and several other countries froze about $300 billion in Russian assets deposited in Western banks. Governments are considering legal powers to use the money for reconstruction and other needs in Ukraine. It is expected that G7 finance ministers may decide how to manage these funds on May 24-25, 2024.
See other examples of similar disinformation narratives, such as claims that the EU’s disintegration is close due to its anti-Russia sanctions, that the latest EU sanctions package is ineffective and doomed to fail, that the EU anti-Russian sanctions kill the economic sovereignty of Europe, or that the US wants to save the dollar from collapsing by provoking a war between Europe and Russia.