Russian u-turn on IMF conditionality

26 October 2000

In September, Russia reimposed energy sector controls to force Russian oil companies to sell some of their product on the home market, only months after it removed them to comply with IMF conditionality. The government argued that the controls would be temporary and were necessary to prevent energy shortages during the winter.

The IMF said the reimposition could delay new loans. It has only recently resumed lending after loans were suspended in September 1999 because of the lack of progress in economic reforms.