China must be ‘horrified’ at Ukraine war, World Bank chief says, warning of lasting consequences for Russia
- David Malpass says Beijing’s reaction and Western sanctions will influence how Moscow’s future trade relationships develop
- The World Bank is preparing a half-billion-dollar loan package for Ukraine, and hopes the money will be ready as soon as next week
Russia’s war in Ukraine has “horrified” the World Bank’s shareholders, including China, and will have lasting consequences for Russia’s international standing, the global lender’s president said on Friday.
World Bank President David Malpass told Fox Business Network that China’s reaction to the war and the Western sanctions imposed on Moscow would be influential in determining how Russia’s future trade relationships develop.
He said the raft of sanctions was having a significant impact on Russia’s interactions with financial markets, while raising questions about its dependence on China and delivering a huge supply shock to world energy and food markets.
China, a major shareholder in the World Bank, had to be “horrified at where this is developing”, Malpass said.
“That’ll be an important issue in how world trade develops. They buy oil from Russia when the sanctions are in place, but can the companies really remain part of the world system when they’re so engaged with Russia? We’ll have to see how that evolves.”