As major economies meet, US looks to increase pressure on Russia
WASHINGTON, United States — US Treasury Secretary Janet Yellen this week will call on her counterparts in major economies to ramp up the economic pain on Moscow over its invasion of Ukraine, a senior official said Monday.
The fallout from the war and the impact on the global economy will be key topics of discussion during the spring meetings of the IMF and World Bank, which began Monday.
Finance officials from the G7 and G20 nations also will meet this week.
"The secretary believes the Russian invasion of Ukraine has demonstrated the need for the world's largest economies to stand together to defend international order and protect peace and prosperity," the Treasury official told reporters.
"She will use this week's meetings to work with allies to continue our united efforts to increase economic pressure on Russia while mitigating spillover effects."
The IMF and World Bank have warned of the devastating costs the war is imposing on the global economy, especially through rising prices for energy and food at a time of high inflation.
Western sanctions on Moscow have contributed to the price pressures, which are hitting the poorest countries the hardest.
While Yellen is "deeply concerned" about the impacts, "We are firm in our resolve to hold Russia and its leadership accountable, and have imposed crippling sanctions," the official said.
In a speech at the Peterson Institute for International Economics, Deputy Treasury Secretary Wally Adeyemo vowed to "take apart Russia's war machine, piece by piece, by disrupting their military industrial complex and its supply chains."
"We are continuing our efforts to use sanctions and export controls to deny Russia the critical inputs it needs, targeting key sectors like aerospace, electronics and others related to the defense sector," he said, noting their invasion has taken longer than Moscow expected.
The Treasury official noted Washington also will continue to work to penalize countries that try to evade the sanctions and restrict Russian leader Vladimir Putin's ability to project power, though they did not provide any specifics on the type of sanctions or the targets being considered.
Boycotting Russia
While Yellen will participate in key meetings this week, especially the opening session of the G20 focused on the fallout from the Russian invasion, she will not attend other sessions if officials from Moscow are included, the Treasury official said.
She will make it clear that "the benefits and privileges of the leading economic institutions of the world — which we helped create after (World War II) — are reserved for countries that demonstrate respect for the core principles that underpin peace and security across the world," the Treasury official said.
Russian finance officials are expected to participate remotely in the G20 meeting on Wednesday, which is led by Indonesia this year.
Other officials from the world's leading economies may boycott the sessions as well, a French source told AFP last week.
US President Joe Biden has proposed ejecting Russia from the G20.
Yellen will meet with Ukraine's Prime Minister Denys Shmyhal and "will reiterate the Biden administration's firm support for the people of Ukraine as they defend their lives and their country," according to Treasury.
Adeyemo will meet with Ukrainian Finance Minister Sergii Marchenko on Thursday.
Yellen also will call for a coordinated multilateral effort to support Ukraine's short-term funding needs for humanitarian relief and rebuilding.
Follow this page for updates on the economic and political consequences of the Ukraine-Russia conflict. Photo courtesy of AFP/Stefani Reynolds
US President Joe Biden welcomes a deal to avert a government shutdown but calls for Congress to swiftly approve aid to Ukraine after it was left out of the agreement.
"We cannot under any circumstances allow American support for Ukraine to be interrupted," Biden says in a statement.
"I fully expect the Speaker will keep his commitment to the people of Ukraine and secure passage of the support needed to help Ukraine at this critical moment," he adds, referring to Republican House leader Kevin McCarthy. — AFP
The Ukrainian military on Thursday says that Russia had launched a "massive" drone attack overnight and that it had destroyed 31 out of the 39 aircraft.
Russian unmanned aerial vehicles were intercepted over Black Sea coastal regions and further inland, says Nataliya Gumenyuk, spokeswoman for the Ukrainian southern military command.
Russia "does not stop the pressure and searching for new tactics: namely, with the use of mass attacks", Gumenyuk says on the messaging platform Telegram. — AFP
Japan dials up sanctions against Russia over its invasion of Ukraine, announcing an expanded list on Friday that included an export ban on electric vehicles.
Russia was hit with a wave of sanctions after it sent forces into Ukraine in February last year, but calls have grown from Kyiv and its allies for tougher action against Moscow.
Tokyo has already frozen assets of Russian individuals and groups, and banned the export of goods to Russia's military-related organisations, as well as the export of construction and engineering services. — AFP
Biden administration announces additional security assistance for Ukraine for its critical security and defense needs.
The United States Department of Defense says that the commitment to security assistance is valued at up to $400 million.
This includes additional air defense munitions, artillery and other ammunition, armored vehicles, anti-armor weapons, and other equipment to help Ukraine counter Russia’s ongoing war of aggression.
The Kremlin on Tuesday issues a veiled warning over the future of grain exports from Ukraine following Moscow's exit from a landmark deal allowing passage for cargo ships from three Ukraine ports.
Kyiv had said it was prepared to continue grain exports despite the Russian withdrawal, which sparked outrage from the United Nations and the West.
"Without appropriate security guarantees, certain risks arise here. If (a future agreement) is formalised without Russia, then these risks should be taken into account," Kremlin spokesman Dmitry Peskov says. — AFP
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