US Yellen: "Ukraine War Has Tremendous Impact on Global Economy"

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Janet Yellen, U.S. Secretary of the Treasury, warned on the 6th (local time) that the Ukraine crisis will have a tremendous economic impact worldwide.

According to U.S. economic media CNBC, Secretary Yellen appeared at the House Financial Services Committee hearing that day and stated, "Russia's actions, including atrocities against innocent Ukrainians in Bucha, are condemnable," adding, "It is an unacceptable insult to the rules-based international order and will have a tremendous economic impact on Ukraine and beyond."

She pointed out, "Globally, the fallout from this crisis is already increasing economic vulnerabilities for many countries facing high debt burdens and limited policy options," and "Russia's invasion has disrupted food flows for millions worldwide and caused soaring prices." Since Russia's invasion of Ukraine, many countries have confirmed grain supply shortages and rising energy prices, raising concerns about economic slowdown. Russia is considered a major global exporter and a key wheat exporter.

Secretary Yellen stated, "Russia's invasion is brutal and unjust," and made clear the Treasury Department's stance to strengthen sanctions, including cutting Russia off from the global financial system to hold it accountable. She also emphasized cooperation with international organizations such as the International Monetary Fund (IMF) and the World Bank to provide food aid to vulnerable countries and enforce sanctions against Russia. She added, "Russia will not be able to operate as usual in any financial institution."

Western countries, including the United States, the Group of Seven (G7), and the European Union (EU), announced additional financial sanctions against Russia on the same day, including a ban on new investments. The new sanctions expand the ban on new investments in Russia from the energy sector to all sectors, and Russia's largest state-owned bank, Sberbank, and the largest private bank, Alfa Bank, will be fully cut off from the financial system.

The U.S. Treasury Department plans to announce an additional list of Russian state-owned enterprises subject to full sanctions on the 7th. Previously, the Treasury blocked the repayment of dollar debts on Russian government accounts within U.S. financial institutions and, the day before, added Russia's darknet market sites and cryptocurrency exchanges to the sanctions list.

On this day, Secretary Yellen pointed out Europe's dependence on Russian natural gas and other resources, stating, "We are witnessing vulnerabilities from reliance on a single trading partner," and emphasized the need to diversify energy sources. She also reaffirmed the White House's commitment to addressing the COVID-19 pandemic, including vaccines and new variants.

This content was produced with the assistance of AI translation services.