Janet Yellen calls for fresh sanctions on Russia as G20 finance chiefs gather in India

The US Treasury Secretary Janet Yellen called for fresh economic sanctions on Moscow on Thursday (February 23) and also said that the world must increase financial support to the war-ravaged Ukraine and help in its fight against Russian aggression.

While speaking in India on the eve of the Russia-Ukraine war anniversary, Yellen said that this is high time for the International Monetary Fund (IMF) to "move swiftly" towards a fully financed loan programme for Ukraine.

The ongoing war, which Moscow calls a "special military operation" and an attempt for "de-Nazification" of Ukraine, led to massive crises, affecting millions globally.

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During her address, Yellen said, "As President Biden has said, we will stand with Ukraine in its fight – for as long as it takes. Continued, robust support for Ukraine will be a major topic of discussion during my time here in India."

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Ukrainian Prime Minister Denys Shmyhal met IMF Managing Director Kristalina Georgieva in Kyiv on Monday. After the meeting, Shmyhal said that the war-torn nation had sought a $15 billion multi-year IMF loan programme.

Mentioning the financial and humanitarian aid to Ukraine sent by the US, Yellen said that the aid totalling $46 billion helped the country to preserve economic and financial stability under "extraordinary circumstances".

She said, "Our economic assistance is making Ukraine’s resistance possible by supporting the home front: funding critical public services and helping keep the government running. In the coming months, we expect to provide around $10 billion in additional economic support for Ukraine."

Call for fresh sanctions on Russia

Yellen told reporters in Bengaluru that fresh sanctions must be imposed on Russia as they are hurting the nation. Her remarks came after the US Treasury Secretary and other G7 finance chiefs discussed further measures to help Ukraine.

Yellen said, "The way I see it, our sanctions have had a very significant negative effect on Russia so far. While by some measures the Russian economy has held up better than might initially have been expected, Russia is now running a significant budget deficit."

Yellen said that the export controls were making it "extremely difficult" for Moscow to replenish its munitions, including repairing 9,000 tanks destroyed in the war.

She said, "We see that it has led to an exodus of some of the most qualified scientists and entrepreneurs in the Russian economy, and an exodus of foreign investment."

"Russia is running down its holdings in its sovereign wealth fund so... the price cap that we have put on Russian oil is clearly substantially reducing Russia's revenues," she added.

On Friday (February 24), the day Russia started the invasion last year, Yellen will be joined by other finance ministers and heads of central banks from the Group of 20 nations for a crucial meeting in India.

(With inputs from agencies)

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