Biden Announces New Sanctions Against Russia, Including A Trade Rating Downgrade, In addition To Banning Investment And Imports Of Diamonds And Vodka | Ukraine and Russia
3 min read
The President of the United States, Joe Biden, announced on Friday (11) that he, along with the Group of Seven major industrialized countries of the world, will withdraw from Russia the “most favored nation” trade status, a measure that would pave the way for increased tariffs on Russian products ( Read more below).
Biden also announced that he would stop importing Russian diamonds and vodka into the United States.
Biden said President Vladimir Putin is an “aggressor, an aggressor,” and he should “pay the price.”
Russia’s withdrawal from “most favored nation” trade status will be final approved in coordination with the G7 and the European Union, and will be decided by Congress, but the House of Representatives has already shown it is broadly supportive.
Joe Biden announces actions against Russia over the war in Ukraine, at the White House in Washington (Image: REUTERS/Evelyn Hochstein)
“These are the latest steps we are taking, but not the latest steps we are taking.” Biden said. Russia calls its actions in Ukraine From “special operation”.
He also said the United States would add new names to the list of Russian oligarchs subject to sanctions and would ban the export of luxury goods to Russia.
Biden said he will ban future US investment in any sector of the Russian economy and hopes to sign soon the budget bill that includes an additional 13.6 billion to help the Russian economy. Ukraine.
The “most favored nation” clause, known in the United States as a “permanent normal business relationship,” is the cornerstone of free trade. It is the principle of reciprocity and non-discrimination that currently governs most trade relations between countries.
The World Trade Organization (WTO) requires that any trade advantage, such as tariff reductions, granted by one member automatically applies to all other members. Concretely, denying Russia this status would allow its trading partners to impose higher tariffs, penalizing Moscow’s exports.
Warm applause from the Polish parliament, Zelensky talks about the deaths of children in Ukraine
The coordinated moves by Washington, London and other allies are adding to an unprecedented series of sanctions, export controls and banking restrictions designed to pressure Putin to end Europe’s biggest war since World War II.
Sources in the US administration said that each country should implement the change in Russia’s trade situation based on its national operations.
In the United States, repealing Russia’s “permanent normal working relations” status would require congressional action, but lawmakers in both houses – and on both sides of the political aisle – have already signaled their support.
In 2019, Russia was the US’s 26th trading partner in goods, with about $28 billion exchanged between the two countries, according to the US Trade Representative’s office.
The most important US imports from Russia include mineral fuels, precious metals, stone, iron and steel, fertilizers and inorganic chemicals, all goods that could face higher tariffs once Congress moves to revoke Russia’s trade status of the preferred nation.
“Devoted food specialist. General alcohol fanatic. Amateur explorer. Infuriatingly humble social media scholar. Analyst.”
