While the Russian economy has not yet buckled under the wide array of sanctions from the United States and other Western countries, Treasury Secretary Janet Yellen said Monday she expects it to grow weaker over time as the country loses foreign investment and runs through its reserves and rainy-day funds.
“We will see an increasing toll on Russia’s economic trajectory over time,” she told CNN in an exclusive interview during her unannounced visit to Kyiv. “And their ability to replenish the military equipment that’s been destroyed in their attacks on Ukraine — that’s been very greatly jeopardized.”
Such a move would bring “severe” consequences, Yellen said.
“We have been extremely clear that we will not tolerate systematic violations by any country of the sanctions that we have put in place that are intended to deprive Russia of access to military equipment to wage this war,” she said. “And we have been very clear with the Chinese government and have made clear to Chinese firms and financial institutions that the consequences of violating those sanctions would be very severe.”