Yellen to call for more economic pressure on Russia, ‘deeply concerned’ over war’s impact on food, energy

WASHINGTON: US Treasury Secretary Janet Yellen this week will call on her counterparts to ramp up the economic pain on Moscow over its invasion of Ukraine, a senior Treasury official said Monday.
Yellen will participate in the spring meetings of the IMF and World Bank, as well as gatherings of finance officials from the G7 and G20 nations, where the fallout from the war will be a key topic of discussion.
“The secretary believes the Russian invasion of Ukraine has demonstrated the need for the world’s largest economies to stand together to defend international order and protect peace and prosperity,” the official told reporters.
“She will use this week’s meetings to work with allies to continue our united efforts to increase economic pressure on Russia while mitigating spillover effects.”
US President Joe Biden has proposed ejecting Russia from the G20.
The IMF and World Bank have warned of the devastating costs the war is imposing on the global economy, especially through rising prices for energy and food at a time of high inflation.
Western sanctions on Moscow have contributed to inflation pressures, hitting the poorest countries the hardest.
“Secretary Yellen is deeply concerned about impacts that Russia’s reckless war are having on the global economy, including the risk of rising food insecurity in emerging markets and developing countries around the world,” the official said “We are firm in our resolve to hold Russia and its leadership accountable, and have imposed crippling sanctions,” .
Washington also will continue to work to penalize countries that try to evade the sanctions, and restrict Russian leader Vladimir Putin’s ability to project power.
The official did not provide any specifics on the type of sanctions or the targets.
Yellen plans to meet with Ukrainian Prime Minister Denys Shmyhal during this week’s big meetings of global economic leaders in Washington — but she’ll be trying to avoid most contact with Russian officials who plan to attend some portions of the event virtually.
Other officials from the world’s leading economies may boycott the sessions as well, a French source told AFP last week.
On Tuesday, Yellen will convene a panel of finance ministers, the international development banks and other institutions to talk about how they will use resources to address food insecurity.
She is expected to warn against export bans, drawing on lessons from the last big world food crisis in 2008, the official said, while ensuring efforts to boost food production in Africa and other regions highly dependent on imports.
Treasury officials will also call for continued research and innovation to ensure that agricultural production is adapted to climate change factors such as heat and drought.
In addition, Treasury’s Office of Foreign Assets Control this week is expected to issue clarifying language to make clear that trade in agricultural products is not barred under existing sanctions, in response to the food security crisis that the Russian invasion of Ukraine has caused.
The World Bank, IMF, UN World Food Program and World Trade Organization have also called for urgent, coordinated action on food security, and appealed to countries to avoid banning food or fertilizer exports.
They said the crisis was compounded by a sharp increase in the cost of natural gas, a key ingredient of nitrogenous fertilizer, which could threaten food production in many countries.
(With AFP, AP and Reuters)

Yellen to call for more economic pressure on Russia, ‘deeply concerned’ over war’s impact on food, energy