IMF chief Lagarde warns Ukraine crisis is major threat

by The Daily Lede

Christine Lagarde also warned that Ukraine will need more than the $17bn assistance package agreed last month, and warned that the crisis in the region could hurt the global economy hard.

She told Handelsblatt that:

“It is a new risk for the global economy.”

“The crisis in Ukraine is a danger that one whose risk of contagion for other countries can be very difficult to measure or hard to predict. Nevertheless, it can have serious economic consequences. “

The oil price has been inching higher this morning, back over $108 per barrel, after pro-Russian campaigners in East Ukraine claimed a landslide win in an unofficial independence referendum.

Ukraine’s economy is expected to suffer a deep recession this year, following the breakdown in relations with Russia – the IMF warns the international community to do more:

“Ukraine needs much more than $ 17 billion,”

“For example, bilateral aid from abroad and financial aid from other international financial institutions. The international community since it has no choice. “