Ukraine war boosting Russia’s economy says IMF

Russia’s economy is expected to grow 2.6 per cent this year – more than double the pace the IMF predicted in October. Pierre-Olivier Gourinchas, the IMF’s chief economist, cited stimulus spending on Russia’s “war economy” coupled with robust revenues from fossil fuels as reasons for the bullish forecast. It’s the largest point difference since October for any of the 12 economies in the fund’s latest outlook, and calls into question the efficacy of the western sanctions regime. Putin is meanwhile exploring new ways to challenge US financial dominance: Russian security council documents seen by the Washington Post show the Kremlin has been convening meetings to discuss ways to undermine the dollar as the world’s reserve currency. They also envision a new financial system between Moscow and Beijing based on digital currencies and blockchain. “In a few years, sanctions will no longer be a brake on global trade and investment,” oligarch Oleg Deripaksa wrote on Telegram this month. “Alternative payment systems and debt markets will be created: In China on the basis of the yuan, and in India and the Middle East on the basis of cryptocurrencies.” Putin has a plan to reshape the global flow of money. Western leaders need to think outside the box to stop it from happening.