Russia's war to have 'enormous' global economic repercussions: US Treasury chief

By Ovunc Kutlu

ANKARA (AA) - US Treasury Secretary Janet Yellen said Wednesday that Russia's war in Ukraine will have "enormous" economic repercussions for the world.

"Globally, spillovers from the crisis are heightening economic vulnerabilities in many countries that are already facing higher debt burdens and limited policy options as they recover from COVID-19," she said in testimony before the US House of Representatives Financial Services Committee.

Yellen listed economic vulnerabilities including food and energy security, in addition to debt sustainability.

"Together, Russia and Ukraine account for nearly a third of the world’s wheat exports. Russia’s invasion disrupted the flow of food for millions of people around the world and caused prices to spike," she said.

"The invasion of Ukraine has also underscored the need for sustainable, affordable, clean, and secure energy for economic growth and security for the United States,” she said. “We are witnessing the vulnerability that comes from relying on one fuel source or one trade partner, which is why it is imperative to diversify energy sources and suppliers”.

Yellen added that many low-income countries are facing increasing debt burdens as the coronavirus pandemic continues into a third year.