Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva warns that Europe faces a “tough winter” and likely more serious problems during the next cold season amid the bloc’s plan to end dependence on Russian energy.
“…the world has proven to be more resilient than we feared, a year in the beginning of the year. We look at the response to the energy shock in Europe, and Europe is moving towards independence from Russia decisively. Yes, there will be a tough winter, maybe the next one would be even tougher, but freedom from dependence on Russia is coming,” Georgieva said on CBS News’ “Face the Nation” on Sunday.
She added that the United States might be able to avoid more serious problems in 2023.
“For most of the world economy, this is going to be a tough year, tougher than the year we leave behind. Why? Because the three big economies, U.S., E.U., China, are all slowing down simultaneously. The US is most resilient. The U.S. may avoid recession,” Georgieva said.
The European Union rolled out a comprehensive sanctions campaign against Russia and pledged to end its dependence on Russian energy supplies after Moscow launched a special military operation in Ukraine on February 24, 2022. The bloc has already approved nine packages of sanctions against Moscow. In addition to the price cap for Russian crude oil that went into effect on December 5, sanctions provide for a price ceiling on Russian refined products starting from February 5, 2023.