The International Monetary Fund has warned that the dangerous global economic repercussions of the war in Ukraine will be “even more devastating” if the conflict escalates.

Sanctions against Russia will have a “substantial impact on the global economy and financial markets, with side effects on other countries.”

“At a time when the situation remains very volatile, and the landscape is unstable, the economic consequences appear to be very serious in the first place,” the International Monetary Fund said in a statement after the Executive Board meeting. “If the conflict escalates, the economic damage will be even more devastating,” he added.

The significant rise in the prices of energy and raw materials in general, as the price of an oil barrel approaches $120, increases the inflationary trend that the world has begun to witness as it recovers from the economic repercussions of the Covid-19 pandemic.

The fund pointed out that “the increase in prices will have impacts around the world, especially on low-income families who dedicate a greater proportion of their budget to food and energy” than the average.

As for Ukraine, it has become “clear” that it will have to face significant costs associated with restarting its economy and rebuilding destroyed and damaged buildings

The Fund noted that the emergency financial assistance requested by Ukraine, which was reported by the International Monetary Fund on February 25, amounted to $1.4 billion.

According to the statement, it is possible to formally submit the Ukrainian request to the International Monetary Fund’s board of directors “as of next week.”

The Fund stressed that countries with close ties to Ukraine and Russia are “, particularly at risk of shortages and supply problems.”

The fund pointed out that Moldova had requested a re-evaluation and an increase in the support plan that benefits from the foundation to deal with the costs of the current crisis.

The fund indicated that it had engaged in talks with the Government of Moldova on this issue.