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World Bank president warns of global financial consequences from Russia’s invasion of Ukraine

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President of the World Bank David Malpass warned on Sunday that Russia’s invasion of Ukraine will have dire financial implications for the entire global economy, including Russia, but said there are some promising factors at play.

Appearing on CBS’s “Face the Nation,” Malpass said the invasion of Ukraine would affect the Russian ruble and in turn the Russian people.

“Their per capita income has fallen below China’s, so as you think about the sanctions, it hits the banks in Russia, but apparently not the oil and gas industry,” Malpass said. “But if they go — if they’re able to stop the Central Bank of Russia from operating, that would really have an effect on Russia and the people.”

Malpass also warns that food and oil prices would likely spike in response to the crisis in Ukraine. He noted that the price of oil and food was “already at a point of fragility because inflation really hits the poor.”

“This is going to drive up energy and food. We can wait and see what Russia does, what China does. Right now China’s buying more from Russia and allowing the sanctions to be to be eroded or circumvented a bit. see where that goes as well. A big thing is the US can supply a lot more if it puts its mind to it.”

Concerns have been raised over how sanctions will affect the West’s energy supply as Russian oil has been brought up as a target for potential sanctions. While the US has refrained from targeting Russian oil in its initial wave of sanctions, White House Press Secretary Jen PsakiJen PsakiUS, NATO seeks to shore up defenses as Russia-Ukraine conflict rages Sunday shows preview: Russia invades Ukraine; Biden nominates Jackson to Supreme Court Europe braces for wave of Ukrainian refugees MORE said on Sunday that they were “still on the table.”

Malpass told Brennan that there would be short-term upward pressure on energy including liquefied natural gas, but said there were other options available in the long run.

“Markets look forward so they can look at the five-year time horizon and realize that there’s a lot of energy available if it’s mobilized, there are alternatives to the Russian dominance of the gas market,” he said, noting that Iran’s global standing would Also be an important factor as the country is also a source of oil for the world.

Recent reports have indicated that some progress has been made with negotiations in Vienna for Iran to rejoin the Joint Comprehensive Plan of Action. Russia is a key part of the Iran negotiations, and Malpass noted that is still left to be seen how Russia’s invasion of Ukraine will affect talks in Vienna.

As for the World Bank is currently doing to help Ukraine amidst the crisis, Malpass said his organization had “instruments” available to help with the flow of refugees out of Ukraine as well as aid programs in Ukraine’s countries to provide.

Malpass said he would be meeting with the finance ministers of the Group of Seven countries on Tuesday, during which they would discuss how much aid can go into Ukraine.

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