Some global fallout if sanctions are imposed on Russia, says Yellen
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WASHINGTON • US Treasury Secretary Janet Yellen said that "some global fallout" would result if the West moves ahead with the punishing, coordinated sanctions threatened against Russia should the country attack Ukraine.
If the penalties are imposed, "of course, we want the largest cost to fall on Russia", she said in an interview. "But we recognise that there will be some global fallout from sanctions."
Her comments echoed United States President Joe Biden's warning on Tuesday that an escalation of the conflict would not be "painless" for Americans.
With Russian troops massed on the border with Ukraine, Mr Biden continues to work with US allies on a diplomatic solution to the crisis, but has warned Moscow of the dire consequences it will face if it moves against its neighbour.
Mr Biden and German Chancellor Olaf Scholz on Wednesday urged Moscow to take real steps to defuse tensions.
Mr Biden "has made clear that we intend to impose very significant costs on Russia if it invades Ukraine", Dr Yellen said.
The Treasury is crafting a set of financial sanctions together with European allies that could target Russian "individuals or companies", and "certainly could involve export controls", she said.
Dr Yellen described them as a "very substantial package of sanctions that will have severe consequences for the Russian economy". But she acknowledged worries about the "potential impacts on energy markets, given the importance of Russia's role as a supplier of oil to the world market and of natural gas to Europe".
Washington is "working with our European allies to try to, as best as possible, shield them from undue impact" by ensuring that "supplies... are available, that come from other parts of the world" and to "try to make sure that oil and natural gas continue to flow to Europe".
Amid the prospects of armed conflict and threats that Russia could cut off energy supplies, oil prices have risen sharply in recent weeks, hitting US$96 a barrel on Wednesday, the highest level since 2014.
AGENCE FRANCE-PRESSE
