In the speech, Ms. Yellen singled out countries, such as China and India, that have continued to engage with Russia despite the global backlash against the atrocities it has committed in Ukraine.
The Russia-Ukraine War and the Global Economy
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Shortages of essential metals. The price of palladium, used in automotive exhaust systems and mobile phones, has been soaring amid fears that Russia, the world’s largest exporter of the metal, could be cut off from global markets. The price of nickel, another key Russian export, has also been rising.
Financial turmoil. Global banks are bracing for the effects of sanctions intended to restrict Russia’s access to foreign capital and limit its ability to process payments in dollars, euros and other currencies crucial for trade. Banks are also on alert for retaliatory cyberattacks by Russia.
“Let me now say a few words to those countries who are currently 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. “Such motivations are shortsighted.”
“And let’s be clear: The unified coalition of sanctioning countries will not be indifferent to actions that undermine the sanctions we’ve put in place,” she continued.
The United States and its allies in Europe and Asia have imposed sanctions on Russia’s central bank, its top financial institutions and its military supply chain. There is growing pressure to level sanctions on Russia’s energy industry, and some have argued that the United States must consider “secondary sanctions” on countries that do not comply with restrictions that the Biden administration has enacted on transactions.
Referring to Russia’s president, Vladimir V. Putin, Ms. Yellen asserted that the United States did not intend to let up in its effort to strangle the Russian economy, saying, “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.”