US Treasury Secretary Janet Yellen in Gandhinagar, India, July 16, 2023 (AFP/Punit PARANJPE)
Stepping up efforts to support Ukraine in the face of the Russian invasion is “the best thing” to do to help the global economy, in addition to supporting developing countries, US Treasury Secretary Janet Yellen said on Sunday. .
Ms. Yellen is taking part in Gandhinagar, in western India, in a meeting of the great financiers of the G7 countries on Sunday before attending a meeting of the G20 Finances in the same city on Monday and Tuesday.
A “key priority” is to “redouble our support for Ukraine”, she insisted during a press conference.
She said she realized for herself during her visit to Kyiv in February the “massive” impact of foreign aid for Ukraine, both civilian and military.
“Ending this war is first and foremost a moral imperative. But it’s also the best thing we can do for the global economy,” she said.
Russia’s invasion of Ukraine – two major breadbaskets on the planet – has sent shockwaves through the global economy since last year by driving up food and energy prices.
An agreement on Ukrainian grain exports transiting through the Black Sea expires on Monday, and Moscow has so far refused to renew it.
On the sidelines of the NATO summit in Vilnius this week, G7 leaders pledged support for Ukraine for as long as necessary in the face of Russian invasion.
“Budgetary support is essential for Ukraine’s resistance,” said Ms. Yellen, also referring to the emphasis placed by the G7 on the fight against Moscow’s circumvention of international sanctions.
Ms Yellen tried to brush aside concerns that massive support for Ukraine would come at the expense of aid to southern countries: “I reject the idea of a barter” between these two issues, she said. she says.
As proof of this, the US Treasury Secretary pointed to the ongoing efforts to reform the multilateral development banks, starting with the first of them, the World Bank, in order to boost their effectiveness in the years to come.
She also cited progress in restructuring the debt of countries such as Zambia, and said she expected similar files to be finalized soon for Ghana and Sri Lanka.
The “illegal” war unleashed by Russia in Ukraine is also a cause of the recent worsening of the over-indebtedness of developing countries, she tackled in passing.
© 2023 AFP
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