Yellen: ‘Much’ of China-Russia Trade ‘Unproblematic’ — We’d ‘Consider Sanctioning’ Aiding Russian Military

During an interview with CNBC released on Monday, Treasury Secretary Janet Yellen said that “China is entitled to have a relationship with Russia.” And “China and Russia do a lot of trade, much of it is unproblematic. But anything that involves aiding Russia’s military in their brutal war against Ukraine is unacceptable” and that “we would consider sanctioning” any institution that is aiding Russia’s military.

CNBC host Sara Eisen asked, “You also brought up matters of national security on this trip and said that there would be consequences for China if they increased support, militarily, for Russia. And we also heard, this week, reportedly, from Secretary of State Antony Blinken, who said that that was happening on a large scale. So, are we looking at sanctions on Chinese companies?”

Yellen responded, “Well, it’s not only Chinese companies. We would feel that any — particularly any financial institution that facilitated trade in dual-use goods or strictly military goods in violation of our sanctions and aiding Russia’s military, we would consider sanctioning. The president issued a recent executive order that would enable Treasury to impose sanctions on financial institutions that are found to be doing this in a systematic way. And we’ve not used this tool yet, but it is one that would be available. And what I’ve tried to make clear is that we stand ready to act if we see significant violations by — especially by financial institutions –.”

Eisen then cut in to ask “In China?”

Yellen answered, “Well, in other countries as well.”

Eisen then asked, “What about the Chinese government and its support of Russia?”

Yellen responded, “Well, China is entitled to have a relationship with Russia. What we have made clear is that it is unacceptable to us for China to support Russia militarily. And that’s — doesn’t say that China can’t have a relationship with Russia. China and Russia do a lot of trade, much of it is unproblematic. But anything that involves aiding Russia’s military in their brutal war against Ukraine is unacceptable to us, and we have the ability to sanction it.”

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