IMF head says Russia to face deep recession due to sanctions

WASHINGTON, Mar 14 (PRIME) – Sanctions will push Russia deep into recession, International Monetary Fund (IMF) Chairwoman Kristalina Georgieva said on Monday.

“Let's remember that the reason there are unprecedented sanctions is because the unthinkable happened… and the impact of the sanctions is quite severe for the Russian economy. We expect a deep recession in Russia, and this abrupt contraction is affecting already how the Russian population is taking the heat on them. The ruble depreciated significantly,”I Georgieva said.

A high-ranking IMF official said that the impossibility for the Russian central bank to use the foreign currency and gold reserves to support the ruble and the financial system, prohibition for the largest banks to make transactions in the E.U., the U.K. and the U.S. and disconnection of seven banks from SWIFT were the most painful sanctions.

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