US Treasury Sec. Yellen: Sanctions imposed with Western allies are isolating Russia's economy


US Treasury Secretary Janet Yellen said on Thursday, “sanctions imposed with Western allies are isolating Russia’s economy and degrading its productive capacity.”

Additional quotes

US will provide $10 billion in new economic aid to Ukraine in coming months.

Economic aid from US, allies is enabling ukraine’s resistance by keeping govt running, funding critical public services.

Critical that IMF move swiftly on a fully financed programme for Ukraine, will promote ‘continued robust support’ at G20 meetings.

Global economic outlook has improved since last G20 meetings in October, some spillovers from Ukraine war have been mitigated.

Western price caps on Russian oil have helped cut Moscow’s oil revenue by 60%.

Will continue to push China, other bilateral creditors for ‘meaningful debt treatment’ for distressed developing countries.

Will discuss how G20 can advance World Bank reforms to boost finance to fight climate change, other global challenges.

We would like to see strong condemnation of war on Ukraine.

Will express views that russia is in clear violation of international law in its war on Ukraine.

Russia’s war in Ukraine is principal factor shaping global economic outlook.

Communique still under negotiation, but past g20 statements have contained strong language on ukraine conflict.

Market reaction

Amidst escalating geopolitical tensions, Yellen’s comments are helping the safe-haven US Dollar recover some ground in the European trading hours. The US Dollar Index is down 0.13% on the day, trading at 104.45 as of writing.