BENGALURU, India (AP) — The U.S. wants to see tougher and more effectively enforced sanctions against Russia and additional support for Ukraine, Treasury Secretary Janet Yellen said Thursday during meetings of the Group of 20 leading economies in the Indian technology hub of Bengaluru.
Speaking on the eve of the anniversary of Russia’s invasion of Ukraine, Yellen said sanctions against Moscow were working but more needed to be done to hobble the Russian war effort while supporting Ukraine.
“We have deprived them of many channels they can obtain material that is critical for their defense efforts,” Yellen told reporters. “That is a particular focus we have in mind in respect to enforcement of existing sanctions and perhaps with respect to further sanctions.”
Yellen said the U.S. expects to provide another $10 billion in assistance to Ukraine on top of more than $46 billion already given. She commended allies for their direct aid and said the role of the International Monetary Fund in those efforts is “critical.”
Yellen said that work “could not come soon enough” as well as on extending the Black Sea Grain Initiative that allows shipments from Ukraine and other efforts to improve food security.
Given the “strong language” on the war included in the G-20’s final statement at summit meetings in Indonesia in November, Yellen said she believed a strong condemnation of the war and its impact on the world economy is achievable in Bengaluru, though the issue is still under discussion.
Overall, the G-20 is a forum focused on economic rather than security concerns. In Bengaluru, finance ministers, central bank governors and other leaders are due to discuss a range of issues, including climate finance, regulating digital currencies, global taxation efforts and other financial priorities.
Turning to such topics, Yellen said the global economy was “in a better place” than several months ago as inflation eases and supply disruptions ease but warned that “we’re not out of the woods yet.”
Yellen urged China to work with other donor countries in addressing the problem.
Many countries face daunting debt “overhangs,” Yellen said, after costly efforts to cushion the worst effects of the COVID-19 pandemic. Such woes have deepened as countries’ import bills surged due to sustained higher prices for food, oil and fertilizers and weakening currencies.
But a slew of other countries, from Laos and Afghanistan to Venezuela and Argentina, have seen their finances deteriorate in the past year. The IMF estimates that about 55% of all low-income countries are near or in debt distress.
At a press conference on the sidelines of the meeting, Japanese Finance Minister Shunichi Suzuki said the smaller Group of 7 democracies are advising multilateral banks to review their business models to better address poverty reduction and achieve sustainable development goals.
China is one of Sri Lanka’s biggest creditors after extending it loans to build a port and other facilities. It has offered a two-year suspension of repayments but balked at reducing the amount owed. The IMF has set a reduction in debt as a condition for an emergency loan.
Suzuki said the G-7 is working to resolve debt issues for Ethiopia, Ghana and Zambia.
AP Business Writer Elaine Kurtenbach in Bangkok contributed to this report.
Source: The Hill