Yellen Promises $10 Billion in Economic Support to Ukraine Amid US Sanctions on Russia
On the eve of the one-year anniversary of Russia's invasion of Ukraine, US Treasury Secretary Janet Yellen has promised to provide an additional $10 billion in economic support to Ukraine in the coming months.[0] Yellen made the announcement at a press conference in Bengaluru, India, where finance ministers and central bank governors from the Group of 20 countries are gathering Feb. 22-25.[1]
Yellen's comments come as the US seeks to impose further sanctions on Russia and is working with allies to degrade its ability to wage war in Ukraine.[2] The US has already provided over $46 billion in security, economic, and humanitarian assistance to Ukraine, and the additional $10 billion will be used to support critical public services and keep the government running.
Yellen also commended the resilience of the Ukrainian people and highlighted the bravery of the Ukrainian military and economic and finance officials who have fought hard to maintain the country's financial and economic stability under extraordinary circumstances.[3]
Yellen also expressed her support for the IMF's efforts to move swiftly towards a fully-financed program for Ukraine and called on all bilateral official creditors, including China, to participate in meaningful debt treatments for developing countries and emerging markets in distress.[4]
Earlier in the day, Union Finance Minister Nirmala Sitharaman met with Yellen and held discussions.[5]
Yellen's announcement of additional economic aid to Ukraine follows US President Joe Biden's commitment to stand with Ukraine in its fight against Russian aggression and missile attacks. The US and its allies are also imposing severe economic costs on Russia in order to degrade its military-industrial complex and reduce its revenue to fund the war.[3] The impacts of these actions are already being seen, with the Russian military struggling to replace over 9,000 pieces of heavy military equipment that it has lost since February 2022.[3] Russia's economy is also becoming increasingly isolated, with estimates indicating that nearly a million Russians may have left the country last year.[3]
Yellen also commented on the global economic outlook, noting that it is in a better place than many predicted months ago.[1] She pointed to a resilient US economy, where headline inflation has moderated over the past few months and the labor market remains strong.[3]
Overall, Yellen's comments highlight the US's commitment to providing material support to Ukraine and to maintaining pressure on Russia to end its unjust war.
0. “US pushes for more IMF aid to Ukraine, tougher sanctions on Russia” La Prensa Latina, 23 Feb. 2023, https://www.laprensalatina.com/us-pushes-for-more-imf-aid-to-ukraine-tougher-sanctions-on-russia
1. “Yellen Shifts Tone and Says Global Outlook Improving” Bloomberg, 23 Feb. 2023, https://www.bloomberg.com/news/articles/2023-02-23/yellen-says-global-outlook-improving-while-ukraine-still-in-need
2. “We will continue to impose further sanctions on Russia: US” ThePrint, 23 Feb. 2023, https://theprint.in/world/we-will-continue-to-impose-further-sanctions-on-russia-us/1393301/
3. “Russia's War Against Ukraine: Progress On Macroeconomy And M…” MENAFN.COM, 23 Feb. 2023, https://menafn.com/1105626272/Russias-War-Against-Ukraine-Progress-On-Macroeconomy-And-Mitigating-Spillovers
4. “US Treasury Sec. Yellen: Sanctions imposed with Western allies are isolating Russia's economy” FXStreet, 23 Feb. 2023, https://www.fxstreet.com/news/us-treasury-sec-yellen-sanctions-imposed-with-western-allies-are-isolating-russias-economy-202302230836
5. “US Treasury Secretary Terms Russia’s War Against Ukraine ‘Strategic Failure’” Outlook India, 23 Feb. 2023, https://www.outlookindia.com/international/us-treasury-secretary-terms-russia-s-war-against-ukraine-strategic-failure–news-264612
