Russian Economy Held Up Better Than Might Initially Have Been Expected: US Treasury Secretary Yellen

US Treasury Secretary Janet Yellen has said while the US-led economic sanctions against Russia have had “very significant negative effect so far”, but by “some measures”, the Russian economy has “held up better than might have been initially expected”.

Janet Yellen was speaking at a press conference after the G20 Finance Ministers’ Meeting in Bengaluru on Thursday. Her statement came on the eve of the one-year anniversary of Russia’s ostensible Special Military Operation launched on February 24, 2022, which, since then, has bloomed into a full-scale war.

The US had said last month that the Kremlin’s oil revenue was nearly 60% lower than in the immediate aftermath of the invasion. In December 2022, the US and its coalition had implemented a cap on the price of Russian crude oil followed by limits on the prices of Russian refined products like diesel and fuel oil early this month. “So far, we see clear signs that our policy is working to reduce Russian revenues and stabilise global energy markets,” said Yellen.

She further said Russia is suffering in terms of its budget, and its ability to acquire what it needs. “We will continue to impose further sanctions. We’re working with our allies to continue to degrade Russia’s ability to fight this unjust war”.

The US and its allies have extended support in security, economic, and humanitarian assistance amounting to $46 billion with additional $10 billion economic support for Ukraine in the coming months.

Mentioning the commitments made by the International Monetary Fund (IMF) to move swiftly towards a fully financed programme for Ukraine, Yellen said that “continued, robust support for Ukraine will be a major topic of discussion during her time in India”.

Yellen also met with finance minister Nirmala Sitharaman on the sidelines of the meeting of finance ministers, and stressed US’ support for India’s G20 presidency. Both the finance ministers discussed cooperation on the evolution of multilateral development banks, and encouraging health-finance coordination, according to the Treasury Department of the US.

On the global economy outlook and possible recessionary trend in economies worldwide Yellen said, “The challenges we face are real, and the future is always uncertain. But the outlook has improved since we gathered in the fall. The IMF has forecasted global growth of 3.2% during 2023.”

Yellen underscored the importance of redoubling efforts and that forums like the G20 are important venues for macroeconomic cooperation. She also mentioned that the spillovers of macroeconomic tightening from major economies to the rest of the world must be attended to.

Yellen said she is looking forward to continuing the G20’s work on building a “stronger and more resilient global economy by addressing issues such as debt, climate change, and the evolution of multilateral development banks”.

The IMF estimates that around 55% of low-income countries are close to or in debt distress. Yellen said she will continue to push for all bilateral official creditors, including China, to participate in “meaningful debt treatments for developing countries and emerging markets in distress.” She added that the conversations she has had with the Chinese counterparts have been “constructive” and she is “hopeful” that she will see progress in China in the coming months.

Read all the Latest India News here