US Treasury Secretary Janet Yellen reiterated on Thursday that Washington is ready for new sanctions against Moscow on the eve of the first anniversary of Russia’s invasion of Ukraine, ahead of a meeting with other G7 finance chiefs in India.
The fundraisers of the seven most developed countries meet Thursday in Bangalore on the sidelines of a meeting of the G20 Finances at the end of the week, in particular to discuss a new package of economic sanctions against Moscow.
“Our sanctions have had a very significant negative effect on Russia,” Yellen told reporters.
“Russia is suffering in terms of budget and ability to acquire what it needs, and we will continue to impose new sanctions by working with our allies to continue to degrade Russia’s ability to fight this unjust war,” he said. Ms. Yellen to reporters in Bangalore.
“The price cap we have imposed on Russian oil clearly and significantly reduces Russia’s income,” she insisted.
The United States, the European Union and their allies have imposed drastic sanctions against Russia since its invasion of Ukraine, hitting the highest levels of the Russian state, as well as its industry, banks and oil sector. .
At the beginning of February, the European Union capped the prices of Russian petroleum products transported by ship.
Russian President Vladimir Putin “thought to achieve victory at minimal cost […] a year later, Mr. Putin’s war is a strategic failure for the Kremlin,” said Ms. Yellen.
“In better shape”
The US Treasury Secretary also noted that the global economy was “in a better position” than a few months ago despite the consequences of the war in Ukraine and the COVID-19 pandemic. “The challenges we face are real and the future is still uncertain, but the outlook has improved,” she said.
The International Monetary Fund (IMF), which last month revised upwards its forecast for global growth for 2023, now expects 2.9% this year, against 2.7% initially.
Ms Yellen was speaking ahead of a meeting of G7 finance ministers in Bangalore on Thursday, where new sanctions for Russia and increased financial aid for Ukraine will be discussed.
A senior US official said last week that the United States and its G7 allies were planning a “big new package” of sanctions against Russia around February 24, the anniversary of Russia’s invasion of Ukraine.
A source at the German finance ministry, however, downplayed any decision-making at the meeting.
Finance ministers and central bankers from the G20 are meeting Friday and Saturday in India to discuss measures to deal with the economic consequences of the war in Ukraine and possible debt relief for the poorest countries.
About 15% of low-income countries are in “debt distress”, according to the IMF. A record 349 million people in 79 countries are facing “acute food insecurity”, writes the Washington-based institution.
Any discussion on Ukraine appears delicate for India, the organizing country of the G20, which has not condemned the invasion.
Russia has not confirmed whether it will send a representative to the G20.
Russian Foreign Minister Sergei Lavrov is due to attend a meeting of G20 foreign ministers in New Delhi next week, which will be attended by his American counterpart Antony Blinken.