U.S. Treasury Secretary Janet Yellen seen at the White House in Washington, D.C., on February 8, 2022. Wednesday Yellen told the House Committee on Financial Services that the Ukraine war will have enormous global financial impact. Photo by Yuri Gripas/UPI |
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April 6 (UPI) -- U.S. Treasury Secretary Janet Yellen warned Wednesday that Russia's war on Ukraine and the sanctions against Russia might be a serious blow to the global economy.
"Russia's actions, including the atrocities committed against innocent Ukrainians in Bucha, are reprehensible, represent an unacceptable affront to the rules-based global order, and will have enormous economic repercussions in Ukraine and beyond." Yellen told a House of Representatives hearing on the global economic system.
In her testimony at that hearing Wednesday, Yellen said: "Treasury is committed to holding Russia accountable for its actions so it cannot benefit from the international financial system. President Biden has rallied over 30 countries, representing well over half the world's economy, to impose swift, severe sanctions and export controls on Russia."
Yellen said international financial institutions are stepping in to provide critical budget financing to help respond to the economic costs of Russia's war on Ukraine.
Since the beginning of the war, the International Monetary Fund has provided $1.4 billion in rapid financing for Ukraine. The World Bank has provided $490 million in rapid financing for Ukraine -- part of a $3 billion package of support planned over the coming months.
Yellen told the House Committee on Financial Services that global spillover from the Ukraine crisis is heightening financial vulnerabilities in many countries that are already facing economic issues as they recover from the COVID-19 pandemic.
Food supply is also being disrupted by Russia's Ukraine invasion, Yellen said.
"Russia and Ukraine account for nearly a third of the world's wheat exports. Russia's invasion disrupted the flow of food for millions of people around the world and caused prices to spike." Yellen testified.
