Andrea Shalal, David Lawder

WASHINGTON, (Reuters) – U.S. Treasury Secretary Janet Yellen appealed Wednesday to China and other nations to end Russia’s “heinous” war in Ukraine. She warned in a historic speech that anyone who attempts to weaken Western sanctions will face severe consequences.

Yellen spoke at the Atlantic Council, Washington. She stated that she hoped China would do something good out of their “special relationship with Russia” and warned Beijing would lose its global standing if this happens.

China must respect the principles of sovereignty and territorial integrity in Ukraine “now, when it matters”, she stated.

“The world’s attitude towards China and its willingness to embrace further economic integration may well be affected by China’s reaction to our call for resolute action on Russia,” Yellen said.

Yellen claimed that wars between Russia, Ukraine and Iran had redrawn global economic outlooks and that the Biden Administration was determined to hold Russia responsible for “horrific” conduct and other violations of international law.

She stated that “Rest assured” until Putin’s heinous war ends, the Biden Administration would work with its partners to push Russia towards financial and economic isolation.

Many nations and companies were influenced by Russia’s invasion to adopt a united stance against Moscow and to cut business ties. This would help to shape global responses to other unmet global challenges, Yellen noted.

She cautioned those nations that “sit on the fence and may see an opportunity to win by preserving their relations with Russia and filling the void left behind by others”, that their motives were not long-sighted.

She stated that “the future of the international order is in danger, for both peaceful security as well as economic prosperity.” “And let’s be clear, the unified coalition … will not be indifferent to actions that undermine the sanctions we’ve put in place.”

Yellen’s comments come just days after President Joe Biden had warned India (which hasn’t imposed sanctions against Moscow) that it was against India’s interests to buy more oil from Russia. This could hinder the U.S.’s response to the conflict in Ukraine.

Washington and its allies tried to force India and China to support Russia in what they called “special military operation” by putting pressure on them.

Yellen claimed that Biden’s multilateral approach allowed the Group of Seven advanced countries to impose large costs on Russia. She also made it clear that she was in favor of a rules-based, global order that preserves peace and promotes prosperity.

The same approach, with shared values, could solve many other major issues such as climate change and ending the COVID-19 epidemic.

Yellen said changes were also needed to “modernize our existing institutions — the (International Monetary Fund) and the multilateral development banks — so that they are fit for the 21st century.”

After Biden had said that Russia should not be included in the Group of 20 major countries, her calls are from her.

Some may think that it is too early to dream big, she stated, citing both the war in Iraq and the continuing pandemic. “Yet,” she said, “Yet, this is the time for me to get to the bottom of the financial gaps we’re seeing right now in the international system.”

U.S. officials had begun to prepare proposals for creating the IMF and World Bank in 1941. It was also early in World War Two.

“We should start to shape a better future now, not wait for the new normal.” “We should be able to make a better future now,” she stated.