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Yellen Weighs the Costs of War Against Russia’s Frozen Assets | Associated Press

Washington (AP) — Increasing economic damage to Ukraine from Russia’s ongoing artillery is rushing billions in aid to countries where the United States and its allies are in need — and Russia itself We are also looking for other sources of funding.

“This is just the beginning of what Ukraine needs to rebuild,” Treasury Secretary Janet Yellen admitted after the United States announced $ 1.3 billion in new economic and military aid to Ukraine on Thursday.

World Bank Governor David Malpass said the war has already caused more than $ 60 billion in damage to buildings and infrastructure.And the International Monetary Fund in the latest global economic outlook Said Ukraine’s economy will shrink 35% this year and next year.

The question of who pays to recover Ukraine from the war has been increasingly addressed to the Russian state.

Yellen said Thursday that asking Russia itself for funding to rebuild Ukraine “is what we should pursue.”

When asked at a press conference about the possibility of using the Central Bank of Russia’s frozen funds to support Ukraine, Yellen said, “I don’t want to be that light,” based on an agreement with U.S. allies and partners. He added that he had to. ..

Ukrainian President Volodymyr Zelensky said in a virtual speech to the IMF and World Bank leaders that “a special tax on war is needed.” He called for the proceeds of the licensed property and the central bank reserves to be used to compensate for Ukraine’s losses.

He added that the frozen Russian assets “must be used to rebuild Ukraine after the war and to pay for losses incurred in other countries.”

The statement was issued after the Biden administration announced that Ukraine would provide Ukraine with an additional $ 500 million in financial support to maintain salaries, pensions and other government programs. Russian invasion..

“We plan to deploy this direct aid to Ukraine as soon as possible for use in the most urgent needs,” Yellen said.

The new funding will be provided in addition to the $ 500 million financial aid announced by President Joe Biden in March.

Prior to the announcement, Yellen met with Ukrainian Prime Minister Denys Shmyhal, Deputy Secretary of Finance Wally Adeyemo, and Treasury Minister Serhiy Marchenko. The announcement is Spring Meeting of IMF and World Bank It was dominated by conversations about how to manage the spillover from the Russian war in Ukraine.

The call to use frozen central bank funds to rebuild Ukraine is increasing as the human and financial costs of the war increase. In addition, governments that provide subsidies and aid to Ukraine need to tackle rising inflation, which affects their food and energy prices.

However, liquidating the assets of Russia’s frozen central bank, among other licensed assets, is not easy and may require parliamentary action.

“Without a law permitting the use of these assets, it’s unclear if that would be possible,” Yellen said.

The Treasury imposed a new wave of sanctions on Russia on Wednesday. The sanctions package contains penalties for more than 40 people and groups accused of avoiding sanctions.Sanctions include the first set of penalties for Cryptocurrency mining company In connection with the war.

Yellen said Thursday that the United States continues to “tighten the vise of economic pressure campaigns.”

She carefully answered questions about whether European allies need to be banned Russian oil and gas importsProblems that recur during the war in Ukraine.

“Europe clearly needs to reduce its dependence on Russia for energy, but it needs to be careful,” Yellen said, noting that oil prices could rise around the world. Under such circumstances, she said, Russia could still be economically profitable, even if sales in Europe declined.

On Wednesday, Yellen and the Minister of Finance of Ukraine I got out of a group of 20 people As the Russian representative started talking.

Several other finance ministers and central bank governors also left the room, speaking anonymously because the event wasn’t open to the public, according to people familiar with the meeting.

When a representative of Russian President Vladimir Putin spoke, some ministers and central bank governors who attended the meeting effectively turned off the camera, he said.

“In terms of participating in our global forums, we cannot do business as usual for Russia,” Yellen said.

However, Yellen was uncommitted to the proposal to exclude Russia from the G20, which is made up of representatives of industrial and emerging market countries.

“We look for ways to signal our disapproval, recognizing that there is a lot of work to be accomplished,” she said.

The Associated Press reporter Paul Wiseman contributed to this report.

Copyright 2022 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

Yellen Weighs the Costs of War Against Russia’s Frozen Assets | Associated Press

Source link Yellen Weighs the Costs of War Against Russia’s Frozen Assets | Associated Press

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