G-20 finance leaders face dire consequences from war in Ukraine – Times of India

Bangkok: US treasure Secretary Gento Yellen urges leaders of major economies to work more closely to counter the impact Russiaattack of Ukraine,
Yellen and other top financial officials from the Group of 20 leading rich and developing countries are gathering on the Indonesian island of Bali for meetings beginning Friday. Yellen is calling for support for a price cap on Russian oil that could help bring energy costs under control and reduce decades of high inflation in many countries.
Yellen said oil prices have risen partly because of the war in Ukraine, which has driven up energy costs, which accounted for nearly half of the increase in US consumer prices in June, the 9.1% annual jump.
It will be the latest attempt to keep Russia’s military from revenue-hungry on top of thousands of sanctions already imposed to punish Moscow for its invasion.
“A price cap on Russian oil is one of our most powerful tools that Americans and families around the world are feeling at the gas pump and grocery store, a limit on the price of Russian oil,” Yellen said. The news briefing in Bali was also shown online.
Yellen said that no price has yet been set for such a cap, but that the level should be “which clearly gives Russia an incentive to continue production, which would make production profitable for Russia.” ”
She said she “hoped” that countries such as China and India, which recently boosted imports of Russian crude, sold at steep discounts, would see it in their own interest to adhere to the price cap.
Without a price cap, an EU and perhaps US ban on providing insurance and other financial services would take effect. “Therefore, we are proposing an exception that would allow Russia to export as long as the price does not exceed the level set now,” Yellen said.
The war has had the biggest impact on economies already grappling with rising debt and other crises. Yellen said a key objective of Bali’s meetings would be to inspire countries like China to do more to help debt-stricken countries, including Sri Lanka and Pakistan, restructure their obligations.
The head of International Monetary FundIt, meanwhile, warned that the outlook for the global economy has darkened and could deteriorate without better coordinated cooperation on broader issues.
Kristalina Georgieva In a blog post, he said that decisive action is needed to reduce inflation and move the world forward as the world recovers from the coronavirus pandemic.
He said central banks need to act now to help bring inflation under control so that the subsequent shocks to economies and financial systems can be mitigated. He said some 75 central banks have increased interest rates by an average of 3.8 times in the last one year to check inflation.
“It’s going to be a tough 2022 – and possibly an even tougher 2023, with the increased risk of recession,” she said.
Countries whose economies are already in crisis, such as Sri Lanka and Pakistan, are turning to International Monetary FundA lending arm of the World Bank, and to help other institutions deal with their rising debt and dwindling foreign reserves – problems looming as prices of oil, wheat and other commodities rise partly as Russia’s attacks on Ukraine increased because of
“Time is not on our side,” Georgieva said, describing such efforts as an “urgent need”.