Invasion of Ukraine by Russia could affect global economy, warns World Bank president

According to David Malpass, the president of the World Bank, the Russian invasion of Ukraine could negatively affect the global economy, including Russia itself.

The invasion, Malpass said on CBS' "Face the Nation" on Sunday, could have an impact on the Russian ruble, and as a result, the Russian people.

"Understand that the ruble is one of the things that affects the Russian people. Russians have been struggling. Right now, this is a tragedy for Ukraine, the neighboring states, as well as Russians," Malpass said.

The nation's per capita income has fallen below that of China, so when you think about the sanctions, they affect the banks and Russia, but not the oil and gas sector. The Central Bank of Russia will be able to operate, but if they leave, this would have a big impact on Russia and the people," Malpass added.

As oil prices surged above $100 per barrel on Feb. 24, the Russian ruble dropped to a record low against the U.S. dollar after Russia's President Vladimir Putin announced a "special military operation" in Ukraine.

As a reaction to the invasion, US President Biden announced on Friday that he will sanction Putin, Russian Foreign Minister Sergei Lavrov, and other top officials. While Russia has previously expressed concern about sanctions against Putin, it has not cut all ties with the United States.

As part of his previous announcement of sanctions, Biden has announced sanctions against some of Russia's biggest state-owned banks, Russian sovereign debt, and Russian society's most elite members.

28 Feb 2022