Sanctions having ‘important damaging impact’ on Russian financial system: Yellen

BENGALURU: Sanctions imposed on Russia are having a “very important impact”, US Treasury Secretary Janet Yellen mentioned Thursday, calling the invasion of Ukraine a “strategic failure” by Vladimir Putin.

“The best way I see it, our sanctions have had a really important damaging impact on Russia up to now. Whereas by some measures the Russian financial system has held up higher than would possibly initially have been anticipated, Russia is now working a major finances deficit,” Yellen mentioned forward of a Group of 20 assembly in India.

“It’s discovering it extraordinarily troublesome due to our sanctions and our export controls to acquire the fabric it must replenish its munitions and to, for instance, restore 9,000 tanks which have been destroyed due to the battle,” Yellen advised reporters in Bengaluru.

“We see that it has led to an exodus of among the most certified scientists and entrepreneurs within the Russian financial system, and an exodus of international funding. Russia is working down its holdings in its sovereign wealth fund so… the value cap that we’ve got placed on Russian oil is clearly considerably lowering Russia’s revenues,” she mentioned.

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Yellen added that President Putin “thought he would obtain a victory at minimal price, within the phrases of CIA director (William) Burns… One 12 months later Putin’s battle has been a strategic failure for the Kremlin.”

Yellen mentioned the worldwide financial system was “in a greater place” than predicted a couple of months in the past within the wake of the Covid pandemic and Russia’s invasion.

Her feedback got here forward of a G20 finance ministers assembly in India.

“Within the fall, many had been fearful a few sharp financial slowdown the world over. The challenges we face are actual and the longer term is at all times unsure however the outlook has improved,” Yellen mentioned.