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U.S., German ministers discuss efforts to counter Russian sanctions evasion

Published 05/12/2023, 03:55 AM
Updated 05/12/2023, 04:00 AM
© Reuters. U.S. Treasury Secretary Janet Yellen meets with Germany's Finance Minister Christian Lindner during their bilateral talks on the sidelines of the G7 Finance Ministers and Central Bank Governors' meeting in Niigata, Japan, May 12, 2023. REUTERS/Issei Kato

NIIGATA, Japan (Reuters) - U.S. Treasury Secretary Janet Yellen met German Finance Minister Christian Lindner on Friday, underscoring the importance of working together to counter evasion of Western sanctions imposed on Russia over its war in Ukraine, Treasury said.

Yellen and Lindner met on the sidelines of a Group of Seven finance officials meeting in Niigata, Japan, where U.S. officials have called for redoubled support of Ukraine.

"Secretary Yellen expressed appreciation for Germany’s close coordination on the implementation of Russia sanctions and discussed the importance of aligning efforts to counter sanctions evasion," Treasury said in a statement.

The United States and a broad coalition of other countries have provided significant economic, security, and humanitarian assistance to Ukraine, while using sanctions and export controls to impose heavy economic costs on Russia.

Yellen told reporters on Thursday that the campaign had "systematically degraded Russia's military-industrial complex and helped reduce the revenues that Russia can use to fund its war," and Washington and the coalition were focused this year on countering Russia's efforts to evade those sanctions.

© Reuters. U.S. Treasury Secretary Janet Yellen meets with Germany's Finance Minister Christian Lindner during their bilateral talks on the sidelines of the G7 Finance Ministers and Central Bank Governors' meeting in Niigata, Japan, May 12, 2023. REUTERS/Issei Kato

In her meeting with Lindner, Yellen also emphasized the importance of building a clean, secure, and resilient global energy supply chain and affirmed the shared commitment to a strong partnership on global tax cooperation, Treasury said.

Germany and the European Union have objected strenuously to last year's clean energy-focused U.S. Inflation Reduction Act, which included a new $7,500 electric vehicle tax credit, but are trying to work out exemptions that will allow European firms with production in the U.S. to benefit from the U.S. subsidies.

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