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Yellen: US Having 'Intensive Discussions' on Chinese Financing of Military Exports to Russia

Treasury Secretary Janet Yellen, in an interview with Reuters, said that while in her view, outright seizure of frozen Russian assets in the U.S. and Europe is justifiable, that's not the only option to put those assets to use to help Ukraine's economy survive the Russian invasion.

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She said interest on the assets could be pulled forward and used as collateral for loans to Ukraine.

The interviewer also asked Yellen about whether Treasury might sanction Chinese banks that underwrite the export of goods that end up being used by Moscow's military.

"There’s an executive order that the president signed that gives Treasury the power to sanction foreign banks in China or other places that are facilitating the flow of military goods to Russia," Yellen said. "That’s an important power, and it’s one that we would be prepared to use if necessary."

She said administration officials have had "intensive discussions with the Chinese about this; I think they understand our position."

When asked if such sanctions might be imminent, Yellen replied: "I have nothing to announce in terms of sanctions."