US Treasury Secretary Yellen speaks on Ukraine's reconstruction

US Treasury Secretary Janet Yellen underscored the need for a broad coalition of partners to help Ukraine recover and rebuild after the Russian invasion, saying the focus should be on short-term, high-impact projects, the Treasury Department said on Friday.

In a virtual meeting with Ukrainian Prime Minister Denys Shmyhal, Yellen also discussed the need for Ukraine's partners to quickly deliver economic assistance to the country, which has been under siege by Russian forces for more than six months. Yellen also expressed support for Ukraine's efforts to develop a macroeconomic reform program supported by International Monetary Fund financing, according to a Treasury statement. Ukraine, which faces a $635 million principal payment of previous IMF loans starting next week, hopes to soon receive details on the format of new support from the global lender, a senior central bank official said Thursday. The United States will provide Ukraine with grants that will reach $8.5 billion by the end of September, the Treasury said. The Biden administration is also asking Congress for another $4.5 billion to help the country meet its critical needs in the coming months. Yellen's meeting with Shmyhal came hours after the first comprehensive assessment of Ukraine's damage and needs showed that rebuilding the country could cost about $350 billion, or about 1.6 times its gross domestic product in 2021. In her meeting with Shmyhal, Yellen also outlined next steps for implementing the Group of Seven price cap on Russian oil, which is intended to put downward pressure on global energy prices and reduce the revenues Russian President Vladimir Putin is using to finance the war, the Treasury said in a statement. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!