US, Japan agree to cooperate on economic fallout of Ukraine war | Russia-Ukraine war

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Two sides reiterate condemnation of Russia’s ‘unprovoked, unjustifiable, and unlawful conflict’ in opposition to Ukraine.

The highest financial officers of the US and Japan have pledged to work collectively to deal with rising meals and power costs whereas reiterating their condemnation of Russia’s conflict in Ukraine.

US Treasury Secretary Janet Yellen and Japanese Finance Minister Shunichi Suzuki on Tuesday stated the conflict had elevated alternate fee volatility, posing dangers to financial and monetary stability.

The 2 sides pledged to work collectively on forex points beneath their commitments as members of the Group of Seven (G7) and Group of 20 (G20) financial groupings.

“We are going to proceed to seek the advice of carefully on alternate markets and cooperate as acceptable on forex points, in keeping with our G7 and G20 commitments,” the 2 sides stated in a joint assertion following their assembly in Tokyo.

The 2 leaders collectively condemned Russia’s “unprovoked, unjustifiable, and unlawful conflict in opposition to Ukraine” and stated they’d work collectively to help Kyiv in overcoming its financial challenges.

The joint assertion stated each side additionally welcomed efforts to pursue value caps on Russian oil “the place acceptable” however didn’t embrace a concrete settlement for such a scheme.

Washington has instructed that Moscow be prevented from utilizing increased oil costs to fund the conflict amid warnings the international value of oil might rise by 40 p.c to about $140 per barrel with no cap.

A senior US Treasury official earlier on Tuesday instructed {that a} value ceiling that coated Russia’s marginal price of manufacturing might incentive Moscow to proceed exporting oil whereas depriving it of revenues to fund the conflict.

Japan, which is closely depending on oil imports, has been grappling with restricted power provides partly because of the conflict and the falling worth of the yen in opposition to the US greenback.

Suzuki earlier on Tuesday expressed concern in regards to the yen’s slide, saying the federal government would “watch the forex market much more carefully whereas liaising with the Financial institution of Japan”.

Debt reduction

Yellen and Suzuki additionally urged China and different international locations who should not members of the Paris Membership collectors to cooperate on debt reduction for struggling low-income international locations.

“We welcome G7 efforts to proceed exploring methods to curb rising power costs, together with the feasibility of value caps the place acceptable, whereas contemplating mitigation mechanisms to make sure that most weak and impacted international locations preserve entry to power markets,” the 2 leaders stated within the assertion.

In the meantime, Yellen paid her respects to former Japanese Prime Minister Shinzo Abe, who was shot useless on Friday, at a personal wake on Monday night, praising his efforts to revitalise Japan’s financial system and enhance the standing of ladies.

Yellen will go to Indonesia on Wednesday to satisfy Suzuki and different G20 finance officers for his or her July 15-16 conferences earlier than travelling to South Korea.

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