Yellen Calls for Continued Support for Ukraine, Optimistic on Global Economic Outlook
US Treasury Secretary Janet L. Yellen on Thursday called for continued and robust support for Ukraine on the eve of the one-year anniversary of Russia’s invasion. Speaking at a press conference in Bengaluru, India, Yellen said the US expects to provide an additional $10 billion in economic assistance to Ukraine, in addition to the $46 billion in security, economic and humanitarian assistance Washington has already deployed to Kyiv.
Yellen also urged the IMF to pull together a loan program for Ukraine, adding that the US has partnered with a multilateral coalition of over 30 countries to impose severe economic costs on Russia for its brutal assault. She stated that their dual objectives were to weaken Russia's military-industrial complex and cut down the proceeds it can use to finance its conflict.
Yellen additionally warned China and other nations against providing material support to Russia, saying any such actions would amount to an evasion of sanctions and would “provoke very serious consequences.”
The US Treasury Secretary also noted the improved global economic outlook since the G20 last met in October, saying the US economy remained resilient with year-on-year headline inflation having moderated over the past few months as supply chain pressures had eased and global imbalances had subsided.
Moreover, Yellen was optimistic that China would be constructive and understand the needs of distressed countries, while also stressing the importance of being attentive to “the spillovers of macroeconomic tightening” from major economies to the rest of the world.
Yellen said that US and EU moves to cap the price on Russian oil have significantly reduced the Kremlin’s revenue. She added that the US sanctions had had a significant negative effect on Russia so far, and that while by some measures the Russian economy had held up, it was now running a significant budget deficit.
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.
The focus that Yellen has placed on the war in Ukraine is in contrast to India's attempts to reduce the significance of the conflict during the G-20 conference.
Prior to her speech, Yellen met with Indian Finance Minister Nirmala Sitharaman to discuss cryptocurrency, debt issues and energy transitions.
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