Bengaluru: At G20 meeting, Yellen says looking to strengthen sanctions on Russia

US Treasury Secretary Janet Yellen stepped up calls on Thursday in Bengaluru for increased financing support to Ukraine to help it battle the year-old Russian invasion as the United States readies an additional $10 billion in economic assistance in coming weeks.

Yellen, speaking in remarks prepared for delivery to a news conference as G20 finance leader gathered in Bengaluru, said it was critical for the International Monetary Fund to "move swiftly" towards a fully financed loan programme for Ukraine. 

She said US is looking to strengthen sanctions on Russia. "Russia now running a significant budget deficit; its revenues down in Jan almost 50 per cent from where it was last year. Our sanctions have had a very significant negative effect on Russia so far," said Janet Yellen.

"US has made clear that providing material support or assistance to Russia will be a very serious concern to us. Will continue to make this very clear to Chinese private sector, banks and government," she said. 

The global economy is in a better place today than many predicted months ago, she said.

India is hosting the first major G20 event under its year-long presidency at the summer retreat of Nandi Hills near Bengaluru.

“The challenges we face are real, and the future is always uncertain. But the outlook has improved since we gathered in the fall,” Yellen said.

"As President Biden has said, we will stand with Ukraine in its fight – for as long as it takes," she said. "Continued, robust support for Ukraine will be a major topic of discussion during my time here in India."

Yellen said it was critical for the International Monetary Fund to "move swiftly" towards a fully financed loan programme for Ukraine.

"Our economic assistance is making Ukraine’s resistance possible by supporting the home front: funding critical public services and helping keep the government running. In the coming months, we expect to provide around $10 billion in additional economic support for Ukraine."

Yellen said that previous U.S. military, economic and humanitarian aid totalling $46 billion has allowed Ukraine to preserve economic and financial stability under "extraordinary circumstances."

"Our economic assistance is making Ukraine’s resistance possible by supporting the home front: funding critical public services and helping keep the government running. In the coming months, we expect to provide around $10 billion in additional economic support for Ukraine."

Yellen meets FM Sitharaman

Earlier on Thursday, Yellen met Finance Minister Nirmala Sitharaman in Bengaluru. The two leaders exchanged views on G20 FinanceTrack priorities under India's G20 presidency.

They also discussed their perspectives on strengthening multilateral development banks (MDBs), global debt vulnerabilities, crypto assets, and health, besides the just energy transition partnership (JETP) and possible takeaways for the two sides. "Both sides agreed that lessons learnt from the COVID19 pandemic should not be lost sight of and there is a need for enhancing preparedness for future pandemic type shocks," the Ministry of Finance tweeted.

The deputies' meet will be followed by the first G20 Finance Ministers and Central Bank Governors meeting, scheduled to be held between February 24 and 25 in the same city. The meeting will be jointly chaired by Sitharaman and RBI Governor Shaktikanta Das. The meeting will be spread over three sessions, covering issues such as strengthening multilateral development banks to address shared global challenges of the 21st century, financing for resilient, inclusive, and sustainable 'cities of tomorrow', leveraging Digital Public Infrastructure (DPI) for advancing financial inclusion and productivity gains, an official release said earlier.

With inputs from agencies