Yellen Urges IMF to Quickly Move Towards Fully-Financed Programme for Ukraine, Warns China on Evading Sanctions
US Treasury Secretary Janet Yellen on Thursday called for increased support for Ukraine as it battles Russia, and warned China of consequences if it helps Russia evade sanctions. Yellen also highlighted the improved global economic outlook, but stressed that there is still much more work to be done.
Speaking ahead of the G20 meeting in India, Yellen discussed the US’s twin goals of degrading Russia’s military-industrial complex and reducing its revenues that can be used to fund the war. She noted that US and EU moves to cap the price on Russian oil have “sharply” reduced the Kremlin’s income.
Yellen also discussed the US’s commitment to providing Ukraine with an additional $10 billion in economic assistance in the coming months. She urged the IMF to quickly move towards a fully-financed programme for Ukraine. Yellen additionally cautioned against countries that help Russia evade sanctions, saying the administration would continue to make clear to the Chinese government and to companies and banks in their jurisdiction about what the rules are regarding such sanctions and the serious consequences they would face for violating them.
Yellen noted that the US economy is strong and stable, with headline inflation having decreased in recent months and the labor market staying robust. She also discussed the importance of being attentive to the spillovers of macroeconomic tightening from major economies to the rest of the world, noting signs of declining headline inflation across the globe.
Yellen met with Indian Finance Minister Nirmala Sitharaman to discuss cryptocurrency, debt issues and energy transitions, and the two discussed perspectives on strengthening global debt vulnerabilities, multilateral banks and health.
Yellen’s comments come just a few weeks after the International Monetary Fund said it saw a “turning point” for the global economy and raised its growth outlook for the first time in a year. Her spotlight on the war in Ukraine is at odds with G-20 host India’s efforts to downplay the conflict during the group’s deliberations.
In conclusion, Yellen said that the US will stand with Ukraine in its fight for as long as it takes, and stressed the need for the IMF to move swiftly towards a fully-financed programme for Ukraine. She further said it was important for China to cooperate with other nations in providing debt relief to distressed countries, especially Zambia and Sri Lanka.
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