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Treasury Secretary Yellen Says the War Has Hurt Russia's Economy

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According to Treasury Secretary Janet Yellen, Russian aggression against Ukraine has hurt the country's economy and hindered its potential for future growth. Before a meeting with European economic officials at the annual meeting of the International Monetary Fund and the World Bank in Washington, D.C. on Thursday, Yellen stated, "The Russian economy is projected to contract this year and the next." Additionally, Yellen said historic sanctions imposed by the United States, the European Union, and allies against Russia for its unprovoked invasion of Ukraine has cut the nation off from Western capital markets with the larger objective of denying Russian President Vladimir Putin the funds he needs to finance the conflict. Treasury Secretary Yellen According to her comments, made public by the department, "Lost investment, including hundreds of private sector companies that have left the country and are unlikely to return, and constraints on Russia's real economy will create a drag on Russia's growth prospects for years to come." More Details Valdis Dombrovskis, executive vice president and trade commissioner of the European Commission, and Paolo Gentiloni, the European commissioner for the economy, had a meeting with the Treasury secretary. Furthermore, the Economist Intelligence Unit predicts a 6.2% decline in Russia's gross domestic product this year and a 4.1% decline in 2023. According to Agathe Demarais in a statement to CNBC in September, the unit's global forecasting director, the estimates are "huge by both historical and international standards." Treasury Secretary Yellen Moreover, a European oil boycott on Russia, according to the EIU, will severely harm the country's economy. In addition, CNBC reported that the energy sector accounts for nearly a third of Russia's GDP, including 60% of exports and 50% of all fiscal receipts. Also, Read- The Great Tech Rivalry: War Between The US and China On another note, at the IMF meetings this week, Yellen and Deputy Treasury Secretary Wally Adeyemo are advocating the G-7's strategic price cap on Russian oil as a practical way to prevent the Kremlin from having the funds to prolong its conflict with Ukraine. Treasury Secretary Yellen According to Yellen, sanctions have essentially made Russia dependent on "suppliers of last resort like Iran and North Korea for basic military gear." "At the same time, we have provided record amounts of both military and economic assistance to Ukraine," she continued. "We are seeing on the battlefield the military edge this growing disparity is creating."

By Alberto Mesti

Introvert. Eccentric at times. A fashion enthusiast, designer and writer. Lives for the drama, hates being at the centre of it. Can be best described as \'wannabe modern day Lady Whistledown\'.

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