Yellen warns China of 'serious consequences' in helping Russia skirt US sanctions

Treasury Secretary Janet Yellen warned that China will face serious repercussions if it helped Russia evade American sanctions nearly one year after Moscow invaded Ukraine. 

Speaking at a news conference ahead of a G20 financial leaders meeting in Bengaluru, India, Yellen made it clear the U.S. would crack down on any efforts to skirt the financial sanctions levied against Russia to cripple its war effort in Ukraine.

"We have made clear that providing material support to Russia or assistance with any type of systemic sanctions evasion would be a very serious concern to us," she told reporters. "And we will certainly continue to make clear to the Chinese government and to companies and banks in their jurisdictions what the rules are regarding our sanctions and the serious consequences that they would face in violating them."

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Yellen declined to provide specific U.S. intelligence about Russian attempts to avoid sanctions, although the Treasury Department previously pointed to efforts by the Kremlin to acquire advanced semiconductors from Beijing as evidence of deepening ties between the two nations.   

Secretary of State Antony Blinken said in a Sunday interview with ABC's "This Week" that American intelligence suggests China is considering providing arms and ammunition to Russia, a development that he called "a serious problem." 

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"China has been engaged in providing rhetorical, political, diplomatic support to Russia, but we have information that gives us concern that they are considering providing lethal support to Russia in the war against Ukraine," Blinken said. " And it was important for me to share very clearly with [China's top diplomat] Wang Yi that this would be a serious problem." 

Yellen made it clear that the U.S. will crack down on any attempts to avoid the sanctions. "We are seeking to strengthen sanctions and to make sure we address violations of sanctions," she said. 

Although some have questioned the efficacy of the economic sanctions, Yellen maintained that the penalties are working to sap Russia of resources and drain President Vladimir Putin's war chest. She floated the possibility of additional sanctions this year. 

"We are seeking to strengthen sanctions and make sure that we address violations of sanctions," Yellen said. "We have deprived them of many channels they can obtain material that is critical for their defense efforts. That is a particular focus we have in mind in respect to enforcement of existing sanctions and perhaps with respect to further sanctions."

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