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Ukraine Russian war creating ‘huge supply shock’: World Bank president - YouTube
Channel: Fox Business
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the president of the world bank they
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oversee a lot of financial issues that
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are first and foremost leading the
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sanction list against russia
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david very good to have you
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hello neil it's very good to have you
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back on no and i appreciate we haven't
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talked in a while my friend so i'm very
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honored to have you uh if you don't mind
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i'd like to go kind of in a laundry list
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here where the world bank stands and how
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it's interpreting what's been going on
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on the financial sanctions a lot of them
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they that have yet to go into effect i
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understand that uh but is there some
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surprise at your level that they have
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not altered uh russia's behavior more
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pointedly vladimir putin's behavior
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i i can't speak to the sanctions uh what
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we're looking at is russia that's had uh
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economic challenges over the years and
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really over the decades and so this hits
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them hard uh from the standpoint of
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their interaction with world financial
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markets their dependence on china so
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we'll have to see where that goes mostly
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what i'm focused on right now is loss of
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life in ukraine and how can we provide
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financing uh for that to help them to
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help them wherever we can right now
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well you've certainly got your
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priorities right but if you'll just
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indulge me i'm curious as to
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how uh
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how locked and frozen is it for russia
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to get funds that are slated to be
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frozen to be locked away up from him or
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russia i mean how does the world bank
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work
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in that regard on you know shepherding
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this process
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we're not engaged in that the us has put
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in strong sanctions europe has put in
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strong sanctions and it affects world
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oil trade and also uh uh the the food um
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the food trade which is so important
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both russia and ukraine were big
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providers of food and now
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as banks stop working with russia then
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it changes the trade lines going on
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china may be able to make up for some of
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that by they they buy some of the oil
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some of the wheat uh from russia uh but
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uh in for the total world it's a huge
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supply shock that's going on yes
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so uh you know the world bank is leading
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this process to get aid to ukraine as
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you said at the outset here i just want
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to clarify some of those financial
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issues up front but this money it has to
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get in the aid has to get in there and
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with uh you know the russians succeeding
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at taking a number of ports uh
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the opposite you know the aid of any
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sort uh beyond money
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it gets to be problematic doesn't it
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the direct food and and gasoline
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supplies and so on are my impression is
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still making their way across the border
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as far as financing uh we're still
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operating with the finance ministry and
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with the central bank and very closely
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with the imf uh on on this so my
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understanding is there is still a
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substantial need in ukraine for grants
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now and for financing uh for payment of
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of the of the ongoing call it war effort
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the ongoing uh development effort and
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food and medicine efforts that they need
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to do as a government so we're we are uh
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i'll i i'm scheduled to speak with
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president zielinski this afternoon we'll
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be sending to our board uh today uh a
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loan a loan document uh that uh it's
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that started at 350 million dollars
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we're expanding that through through
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guarantees that have come in now from
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netherlands and from sweden uh and we're
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looking to have a a composite or a
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package for ukraine one of the
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challenges is the capacity in ukraine
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itself we're working even today uh with
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people that are in bunkers in ukraine in
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order to have the
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the the documents and the channels for
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the financing safely in place uh for
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them to use the money very quickly i
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hope that can happen uh even next week
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now when you talk about humanitarian aid
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david if the ukrainians were to take
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that uh for for their military or or to
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fight the russians
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they would interpret that as as
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humanitarian aid put to good use
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does the world bank or
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working in concert with the
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international monetary fund have rules
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on this or how that money is ultimately
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used or that aid is ultimately
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you know taken
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we have a long-standing uh large program
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with ukraine so these these operations
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are part of that program which are uh
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which are development programs they're
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programs that uh that help uh ukraine
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with its industries uh and and so we're
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working fully in that sphere neil
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um you know when you were i i think you
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would face the nation actually long ago
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before
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all of this sort of blew up in the
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middle of it blowing up more to the
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point they're expressive what can
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organizations like the world bank
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international monetary fund individual
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central banks around the world do
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uh
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to help out here um
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part of the strategy with other central
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banks working coordinates with the
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united states is to freeze anything
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russia has so that it can't do more harm
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we're getting reports and this might be
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beyond your purview that they are
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playing around in the cryptocurrency
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market and finding ways around
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um you know frozen
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financial funds
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uh do you know if that's the case and
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and and do you fear that russia is doing
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an end run around the global financial
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community up in the world bank imf
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pretty much everyone
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else um i i
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i don't know
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about what you're you're talking about
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there i'm sure there are lots of
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operations underway by very
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sophisticated central banks including
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russia uh to to to adjust to the
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sanctions you know this is the
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the first time that a g20 central bank a
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group of 20 major nations central bank
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has been sanctioned in this way so it's
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very powerful uh and uh so what what
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we've done is stopped all operations in
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russia also in belarus uh and and so
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that i'm i know that it's i know what
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you're trying to get at is is this
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having an impact on russia and i think
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it's having an immense impact on russia
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and on russians uh both the sanctions
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also the the uh weakness and devaluation
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of the ruble these hit people hard
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i know you don't want to put yourself in
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a position of taking a leap year that's
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not quite your purview but if you think
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about it the world is your purview here
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and i i'm not saying you're being
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falsely modest but you have a crucial
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role in seeing how life is
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resumes after hopefully this this ends
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hopefully peacefully hopefully without
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much more violence
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and i'm wondering whether actions that
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the global financial community has taken
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against russia
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continue no matter how this ends
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particularly when it comes to vladimir
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putin that it won't be all right the
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ukraine mass is done
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we can resume
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everything financially we were doing
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prior
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afterwards
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it certainly seems to me that the
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there's a global outpouring in favor of
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ukraine and that will that will have
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lasting consequences whatever the
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outcome of the of the war uh and with
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regard to russia there's a very clear
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focus on on putin being the source of
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the problem uh and so i'm sure that will
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last you know after the
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russia is this these are not new things
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for russia they invaded hungary in 1956
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and czechoslovakia in 1968 the uh
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georgia in 2008 after
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after an olympics they waited for the
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end of the olympics invaded georgia and
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are still there in georgia uh and they
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uh of course invaded crimea right after
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an olympics um and so there's there's a
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there's a history of this and and and i
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i think the world will is taking this
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well this is a
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much a much deeper and broader war uh
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and and the world is taking it very
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seriously as they should
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you know in the end and you mentioned
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all those historical examples um
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you know when vladimir putin does crazy
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stuff like it with the whole crimea
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thing and the chechnya kills a lot of
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innocent civilians and all the world is
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rightly outraged but doesn't seem to be
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so for long he always overcomes it there
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are sanctions imposed sanctions he gets
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around
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then he shows up at g7 meetings that
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become g8 meetings to include in
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international organizations that had
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seen him as a pariah welcome him back
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are you afraid that happens even here
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not this time neil i thi this is a order
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of magnitude worse in terms of the uh
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the the uh the decimation and the deaths
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that are occurring uh so i think there
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will be lasting consequences this is
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as you say pushing pushing belong beyond
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my limits i listen to my shareholders uh
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and they are in in uh they are horrified
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we i met with them a week ago thursday
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so some 10 days ago i had met with
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president zielinski in munich uh two
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weeks ago and then with my board uh and
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there there was a
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consternation shock and horror at what's
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going on i think that continues and is
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likely to stay in place one issue
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important is how does china react uh but
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i think uh as as you look at the at the
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situation china itself has to be
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horrified at
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where this is developing uh that'll be
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an important issue in how world trade uh
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develops they buy oil from russia when
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the sanctions are in place but they do
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they can their companies really
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remain part of the world system when
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they're when they're so engaged with
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with russia we'll have to see how that
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evolves for china that's an important
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issue for the world
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oh so anyone associated with russia
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going forward uh that's something you're
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looking at
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well
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incorrect that i'm looking at it you
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know the the sanctions are are a
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powerful global force uh and there are
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also
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uh uh international uh uh justice system
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uh that will be in play the united
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nations is playing an important role in
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this uh and so i think uh the the uh the
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outpouring from the world
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is uh is is gigantic is way beyond the
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effort that was done after crimea and
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will endure i think for for a long long
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time
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all right david malpass a real pleasure
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thank you for taking the time be safe be
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well uh david is the president of the
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world bank a key
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a key player in how all of this sorts
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out and gets coordinated uh a very
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crucial role here at a time when you're
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dealing with some of the most prominent
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nations on the planet at loggerheads or
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