The International Monetary Fund said on Saturday it planned to submit Ukraine’s $1.4 billion emergency financing request to its board as early as next week and was in talks on financing options with the authorities of neighboring Moldova.

In a statement, the global lender said the war in Ukraine was already driving up energy and grain prices and sending a wave of more than a million refugees to neighboring countries, while triggering sanctions without precedent against Russia.

“Although the situation remains very fluid and the outlook is subject to extraordinary uncertainty, the economic consequences are already very serious,” the IMF said in a statement after a meeting of the executive board chaired by General Manager Kristalina Georgieva.

“The ongoing war and associated sanctions will also have a severe impact on the global economy,” he warned, noting that the crisis was creating a negative shock to inflation and economic activity at a time when Price pressures were already high.

Reuters quoted him as saying price shocks would be felt around the world and authorities should provide fiscal support to poor households where food and fuel accounted for a higher proportion of expenditure, adding that the economic damage would increase if the war escalated.

Sweeping sanctions imposed on Russia by the United States, European countries and others would also “have a substantial impact on the global economy and financial markets, with significant spillovers to other countries.”

In addition to the human toll, Ukraine suffered significant economic damage, with seaports and airports closed and damaged, and many roads and bridges damaged or destroyed.

“While it is very difficult to accurately assess financing needs at this stage, it is already clear that Ukraine will face significant recovery and reconstruction costs,” he said.

The board was due to consider Ukraine’s request for $1.4 billion in emergency funding as early as next week.

Ukraine also has $2.2 billion available through June under an existing stand-by arrangement, the IMF said last week.

Moldova and other countries with close economic ties to Ukraine and Russia were at “particular risk” of supply shortages and disruptions, the IMF said.

He said IMF staff were actively discussing financing options with Moldova, which has requested an increase and reformulation of its existing $558 million IMF loan program to help meet the costs of the current crisis. .