By Andrea Shalal

WASHINGTON (Reuters] – Massive sanctions against Russia and war in Ukraine have triggered a contraction. It has also sent energy and food prices up sharply, which will cause the International Monetary Fund’s global growth forecast to be lower next month, Kristalina Georgieva, IMF Managing Direct, said Thursday.

Global lender already downgraded its January economic forecasts for China, United States, and global economies, citing rising inflation and U.S. tightening monetary policy.

The forecast for global economic growth was 4.4% at the time. This is a minus of 0.5 percent.

Georgieva stated to reporters that Russia had placed unprecedented sanctions against Russia in response to its invasion of Ukraine. This caused a sudden contraction of Russia’s economy which led it into a year of “deep recession.” It was not possible for Russia to default on its debt, she said.

She did not give any detailed predictions for Russia and the global economy.

She stated that the IMF has no policy or program relations with Russia at the moment and its Moscow office is not operational. While Russia has called it a war of aggression, the members condemned the conflict, and there was no agreement to end Russia’s participation in the global lender.

Georgieva stated that Russia was unlikely to be able find a central bank that would allow it to convert its IMF Special Drawing Rights to currencies.