Yellen says Treasury prepared to impose 'severe consequences' on Russia

The U.S. Treasury Department is prepared to impose significant sanctions on Russia if it invades Ukraine, and is working closely with allies to shape those responses, Treasury Secretary Janet Yellen said on Thursday.

"The president has said that we would impose severe consequences on Russia if it invades Ukraine," Yellen told CNBC. "We hope that Russia will look for a diplomatic solution, but we're prepared to impose significant consequences."

She said Washington was working with European allies, who have stronger economic ties to Russia, to understand their concerns about possible economic and financial sanctions and take them into account in designing the responses.