Treasury is crafting a set of financial sanctions together with European allies that could target Russian “individuals or companies” and “certainly could involve export controls,” she said.
Yellen described them as a “very substantial package of sanctions that will have severe consequences for the Russian economy.”
But she acknowledged worries about the “potential impacts on energy markets, given the importance of Russia’s role as a supplier of oil to the world market and of natural gas to Europe.”
Washington is “working with our European allies to try to, as best as possible, shield them from undue impact,” by ensuring that “supplies that are available, that come from other parts of the world” and to “try to make sure that oil and natural gas continue to flow to Europe”.
European Union officials said on Wednesday they have secured alternate sources of natural gas and could survive a supply squeeze by Russia.
Amid the prospects of armed conflict, and threats Russia could cut off energy supplies, oil prices have risen sharply in recent weeks, hitting US$96 a barrel on Wednesday, the highest level since 2014.
Natural gas prices have been more volatile, but also increased in the past week after dipping earlier in the month.
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