Ukraine war to inflict 'enormous economic repercussions' globally : US treasury secretary

play article
Subscribers can listen to this article
Janet Yellen (AFP)
Janet Yellen (AFP)

US Treasury Secretary Janet Yellen will warn on Wednesday that the war in Ukraine threatens to inflict "enormous economic repercussions" globally, just as governments impose fresh sanctions on Russia and economists cut growth forecasts.

"Russia’s actions, including the atrocities committed against innocent Ukrainians in Bucha, are reprehensible, represent an unacceptable affront to the rules-based global order, and will have enormous economic repercussions for the world," Yellen will tell the House Financial Services Committee, according to a copy of her prepared remarks.

US, European Union and Group of Seven officials are coordinating new sanctions on Russia, including a US ban on investment in the country and an EU ban on coal imports, following the discovery of civilian murders and other atrocities in Ukrainian towns abandoned by Russian forces. 

Meantime, the International Monetary Fund is preparing to cut its forecasts for global growth, having previously predicted a 4.4% expansion this year. Deutsche Bank AG economists said on Tuesday that they now expect a recession in the U.S. in the next two years. 

Yellen will say the work of international financial institutions like the IMF and World Bank have become more important in the wake of the war.

They "will be critical partners in rebuilding Ukraine, alongside bilateral donors, and they also will provide vital support to neighboring countries welcoming refugees," she will tell lawmakers.

Development banks will also be called upon to help with spillovers from the invasion, including food insecurity, Yellen will say, highlighting the out-sized role Russia and Ukraine play in global wheat exports. 

The institutions can also help build energy security, in shifting countries away from Russian oil and gas and from fossil fuels generally, she will say, according to the remarks.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
Rand - Pound
Rand - Euro
Rand - Aus dollar
Rand - Yen
Brent Crude
Top 40
All Share
Resource 10
Industrial 25
Financial 15
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders