Economy

On Tuesday (21 March) the International Monetary Fund (IMF) located in Washington D.C. announced that it had reached a staff-level agreement with Ukraine for a 48-month financing package worth about $15.6 billion. The BBC also reports that it is the first loan that the organisation has granted to a country at war. In a statement, the IMF announced that the Extended Fund Facility (EFF) "aims to support the Ukrainian authorities anchor policies that sustain fiscal, external, price and financial stability, and support the ongoing gradual economic recovery, while promoting long-term growth in the context of post-war reconstruction and Ukraine’s path to EU accession". The agreement must however still be ratified by the IMF's board, and follows months of negotiations between IMF staff and Ukrainian authorities. The executive board of the IMF is expected to discuss approval in the coming weeks.

The European Council has announced that it will extend sanctions on Russia for another six months, until 15 September 2023. In a statement released on Monday (13 March), the Council announced: "The existing restrictive measures provide for travel restrictions for natural persons, the freezing of assets, and a ban on making funds or other economic resources available to the listed individuals and entities. Sanctions will continue to apply to 1,473 individuals and 205 entities, many of which are targeted in response to Russia’s ongoing unjustified and unprovoked military aggression against Ukraine."The statement continued: "After 24 February 2022, in response to Russia’s military aggression against Ukraine, the EU massively expanded sanctions against Russia with the aim of significantly weakening Russia's economic base, depriving it of critical technologies and markets, and significantly curtailing its ability to wage war."

After weeks of fierce negotiations between an alliance of six opposition parties from across the political spectrum, the so-called "Table of Six" officially nominated Kemal Kilicdaroglu on Monday (6 March) as their candidate to challenge incumbent Recep Tayyip Erdogan in May's presidential elections. Kilicdaroglu, who has led the center-left Republican People's Party for over a decade, is an understated 74-year-old former bureaucrat from the country's social security authority. There has been some criticism that he lacks the flair and charisma needed to topple Erdogan's populism after 20 years of rule. In speech in Ankara announcing his nomination, Kilicdaroglu said that the opposition coalition would "run the country in consultation and agreement with one another". The group has pledged to reverse many of the changes that Erdogan has brought about since becoming prime minister in 2003, including returning the country to a parliamentary system.

The process of opening-up Saudi Arabia to the world is going on in earnest. As a part of the Vision 2030 blueprint, masterminded by Crown Prince Mohammed bin Salman, the Saudi government is implementing a plan, which, amongst many other things, aims to turn the Kingdom into a popular tourist destination by the end of the decade. Other GCC countries, but particularly UAE, Qatar and Oman, also seek a growth in tourism, and see the industry as one of the potential pillars for their post oil economies. In many countries, tourism is a major economic activity that contributes to economic prosperity. It is also an industry which generates revenues that quickly seep downwards to the very grassroots of society, and so everyone benefits from it. But apart from the economic and financial gains, tourism can also be an instrument of change within societies, opening up conservative, inward looking communities to the outside world. Several Arab Gulf countries have the ambition of turning themselves into major tourist destinations, and some have already considerable success. The potential is great, but there are also some risks.

Ukrainian authorities have raided the home of the prominent business tycoon Ihor Kolomoisky amid a nationwide anti-corruption crackdown. On Wednesday (1 February) the home of the former interior minister Arsen Avakov was also searched, and the Ukrainian Cabinet of Ministers fired the heads of the customs and tax agencies too. Kolomoisky is an erstwhile ally of President Volodymyr Zelensky, whose TV channel gave Zelensky his break with the comedy series Servant of the People, in which Zelensky played a history teacher who ends up becoming president after a student posts a video online of an expletive-laden rant by Zelensky's character about the state of politics in the country. Kolomoisky also backed the former actor's real-life bid for the presidency. He was also the governor of the wider Dnipropetrovsk region from 2014 to 2015, and played a key role in funding volunteer battalions in response to Russia's initial invasion of Ukraine in 2014.