Yellen Discusses ‘Severe Costs’ for Russia With German Minister

(Bloomberg) -- Treasury Secretary Janet Yellen used a phone call with Germany’s new finance minister on Friday to discuss the potential for steps that could “impose severe costs on Russia’s economy” should the increasing tensions between Ukraine and Russia worsen.

“Secretary Yellen also reiterated President Biden’s concern over Russia’s escalation of forces surrounding Ukraine,” according to a statement released by the Treasury Department Friday. She also “expressed her interest in partnering with Germany on contingencies that could be rapidly deployed to impose severe costs on Russia’s economy,” the statement said.

Yellen’s call was with Christian Lindner, the new German finance minister, who filled the vacancy left by the country’s new chancellor, Olaf Scholz.

President Joe Biden and other Nato-member leaders have in recent weeks raised an alarm over the buildup of Russian troops on its border with Ukraine. The crisis has brought to a head growing frictions between Russia and the West over Nato’s post-Cold War expansion since the alliance held open the prospect of membership for Georgia and Ukraine in 2008.

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