IMF postpones Russia visit after heavy criticism across Europe

The International Monetary Fund (IMF) has indefinitely postponed a staff mission to Moscow this week to review the Russian economy for the first time since the invasion of Ukraine, after the move came under heavy criticism from several of Kyiv’s European allies.

After revelations in the Guardian of widespread condemnation, the IMF said it would spend more time gathering information for a “rigorous analysis”.

Officials of the Washington-based organisation were due to travel to the Russian capital and meet “stakeholders” before publishing an assessment of the economy.

The IMF said last week it was a “mutual obligation” to carry out an article IV annual review of a member country and the situation in Russia had become “more settled”.

On Friday, nine European countries protested against the IMF’s plans, saying it would damage the reputation of the fund to resume dialogue with a country that had invaded another.

Aleksei Mozhin, the IMF’s executive director for Russia, told the Tass news agency on Wednesday that the decision was taken on Monday, the day preliminary talks were supposed to start.

Critics said a first official visit since 2021 would be based on flawed data and provide Russia with a cloak of respectability.

In a letter seen by the Financial Times and signed by Poland, Denmark, Finland, Sweden, Lithuania, Latvia, Estonia, and non-EU members Iceland and Norway, ministers said there was a “reputational risk” to the IMF, and indicated a visit would “diminish donors’ efforts and actions in supporting Ukraine through IMF initiatives”.

The letter added that the visit “would be a sign for the international community that the IMF is ready to go back to business as usual, taking a step towards normalising relations with the aggressor”.

The Financial Times reported that IMF boss. Kristalina Georgieva. was involved in a heated discussion at the weekend about the planned trip during talks with EU finance ministers and central bankers in Budapest.

An IMF spokesperson said: “Article IV consultations with Russia have been postponed while we gather all the necessary data and analysis for a rigorous consultation.”