U.S. Treasury's Yellen Makes Surprise Visit To Ukraine To Push Economic Aid

U.S. Treasury Secretary Janet Yellen swept into Kyiv on Monday on a surprise visit to reaffirm U.S. support for Ukraine in its struggle against Russia's invasion and promote U.S. economic aid that is bolstering Ukraine's war effort.

Yellen met with President Volodymyr Zelenskiy and other key government officials just days into the war's second year, repeating U.S. assurances delivered by President Joe Biden a week ago in Kyiv.

"America will stand with Ukraine as long as it takes," Yellen, flanked by sandbags at the cabinet ministers' office, told Ukrainian Prime Minister Denys Shmyhal.

Shmyhal, speaking through an interpreter, said the two discussed further U.S. sanctions on Russia aimed at weakening its economy and military and "confiscating frozen Russian assets and putting them to the benefit of the recovery of Ukraine."

But Yellen told reporters in a phone briefing that there were still significant legal obstacles to fully seizing the $300 billion in Russian central bank assets frozen by sanctions.

Yellen also announced the transfer of the first $1.25 billion from the latest, $9.9 billion tranche of economic and budget assistance from Washington.

In a private meeting with Zelenskiy late in the afternoon, the Treasury said she commended him "for his leadership and resolve in the face or Russia's illegal and unprovoked war."

The Treasury said she welcomed Zelenskiy's actions to strengthen governance and address corruption - actions needed to ensure that U.S. economic aid is being spent responsibly.

AIR RAID SIREN ON ARRIVAL

Yellen's visit comes a week after Biden staged an unannounced trip to Kyiv and promised $500 million in additional military aid for Ukraine and new sanctions on Russia announced days later, including effectively banning U.S. imports of Russian aluminum.

As Biden did, Yellen's staff worked to keep the visit a secret until she left Kyiv, with a daily media advisory for Monday saying only that she would "meet with advisors and staff."

Shortly before her arrival in the capital, city air raid sirens rang out as a warning of a possible attack, although they often turn out to be false alarms.

On a chilly morning, Yellen laid a wreath at a memorial wall for Ukrainian soldiers killed in the war, saying: "I am witnessing first-hand the devastating toll of Putin's brutal war."

Yellen stopped to inspect a destroyed Russian tank and mobile artillery piece at a city square cleared of visitors for security purposes. She declined to answer questions.

BUDGET SUPPORT

Yellen visited Kyiv on her way back to Washington from a G20 finance leaders meeting in Bengaluru, India, where she urged counterparts to boost economic aid to Ukraine and insisted that G20 ministers issue a strong condemnation of Russia's invasion.

Since the war began, the United States has given Ukraine more than $13 billion in economic and budget support funding, and the latest disbursement will push that to over $14 billion, with an additional $8.65 billion expected through Sept. 30.

The latest funds are part of $45 billion in new military, economic and humanitarian approved by Congress in December as part of broad U.S. budget legislation.

Yellen said such economic support is keeping Ukraine's government and critical public services running, schools open and pensions paid, providing a "bedrock of stability" that fuels Ukrainian resistance.

"A sustained military effort cannot succeed without an effective government at home," Yellen said at the Kyiv Obolon School No. 168, where the salaries of teachers, administrators and support staff are reimbursed from U.S. budget support funds.

A chalkboard at the school, damaged in Russia's initial assault on the capital last year, read "Crimea is Ours," next to one with "2+2=4."

"Maintaining an effective government is indispensable to Ukraine's capacity to respond to Russian attacks and other emergencies," Yellen added.

Ukraine is estimated to need $40 billion to $57 billion in external financing this year to support its economy and is negotiating a $15.5 billion loan program with the International Monetary Fund to partly fill the gap.