Yellen warns 'fence-sitters' not to undermine sanctions on Russia

WASHINGTON • Countries seeking an advantage by failing to condemn Russia's "heinous war" against Ukraine are being short-sighted and will face consequences if they undermine Western sanctions, US Treasury Secretary Janet Yellen said yesterday.

The United States and its partners "will not be indifferent" to actions that undermine the sweeping sanctions they have imposed on Moscow and Russian President Vladimir Putin over the invasion, she warned in remarks prepared for an event hosted by the Atlantic Council think-tank.

Ms Yellen said the war between Russia and Ukraine had redrawn the world economic outlook and the US was resolute in its commitment to hold Russia accountable for its "horrific conduct" and its violations of international law. "Rest assured, until Putin ends his heinous war of choice, the Biden administration will work with our partners to push Russia further towards economic, financial and strategic isolation," she said.

The Russian invasion had galvanised many countries and companies to take a unified stance and sever business ties with Moscow, in a way that could help shape the global response to other "unmet global challenges", Ms Yellen said.

But some countries were still "sitting on the fence, perhaps seeing an opportunity to gain by preserving their relationship with Russia and backfilling the void left by others", Ms Yellen said, without naming any specific countries.

"Such motivations are short-sighted. The future of our international order, both for peaceful security and economic prosperity, is at stake. And let's be clear, the unified coalition... will not be indifferent to actions that undermine the sanctions we've put in place."

The US Treasury Secretary also appealed to China to take action to help end the war in Ukraine, warning in her speech that Beijing's standing in the world would suffer if it fails to do so.

Ms Yellen said she "fervently" hoped China would make something positive out of its "special relationship" with Russia.

China cannot expect the global community to respect Beijing's future appeals on sovereignty and territorial integrity if it fails to respect these principles in Ukraine "now when it counts", she said.

"The world's attitude towards China and its willingness to embrace further economic integration may well be affected by China's reaction to our call for resolute action on Russia," she said.

Ms Yellen's remarks come days after President Joe Biden warned India, which has not imposed sanctions on Moscow, that buying more oil from Russia was not in New Delhi's interests and could hamper the US response to the war in Ukraine.

Washington and its allies have sought to pressure India, China and other "fence-sitters" to take a clear stance in opposing Russia.

Ms Yellen said Mr Biden's multilateral approach had enabled the Group of Seven advanced economies to impose significant costs on Russia, and made clear they were acting in support of a rules-based global order that protects peace and prosperity.

She said changes were also needed to "modernise our existing institutions - the (International Monetary Fund) and the multilateral development banks - so that they are fit for the 21st century".

REUTERS