The US government announced on Friday another round of economic punishments against Russia for its invasion of Ukraine, including a ban on imports of products such as vodka and caviar.
US President Joe Biden also called for Russia to lose its status as the US’s normal and permanent trading partner, called the PNTR. “This status means that two countries trade heavily with each other on the best possible terms: low tariffs and few barriers. Removing the PNTR will make it more difficult for Russia to do business with the United States,” Biden said, announcing the measures. , in the White House.
The status change depends on approval from Congress, where Republicans and Democrats are in favor of more punishment for Russia. The country has been the target of several sanctions and economic blockades in recent weeks after starting a war and militarily invading Ukraine.
If confirmed, the status change will make room for the application of restrictions and tariffs to Russian products. If isolation is taken to the extreme, Russia would be treated by American foreign trade in the same way as Cuba and North Korea. The measure, however, needs congressional approval.
In a joint statement, the G7 countries announced similar plans to restrict trade with Russia and remove it from “most favored nation” status, a position similar to the PNTR. “This will revoke important benefits Russia enjoys as a member of the World Trade Organization and ensure that Russian products no longer enjoy most favored nation treatment in our economies,” the group said in a statement. The alliance includes Germany, Canada, the United States, France, Italy, Japan and the United Kingdom, in addition to the European Union.
The G7 also said it works to prevent Russia from accessing funding from international institutions such as the IMF, World Bank and European Bank for Reconstruction and Development. “Russia cannot grossly violate international law and expect to benefit from being part of the international economic order,” the statement continued.
Other focuses of action by the G7 are to continue the pressure on Russian oligarchs and fight ways to evade sanctions and Russia’s disinformation campaigns. New barriers to foreign trade and the financing of Russian entities are also discussed.
On Friday, Biden signed an executive order that vetoes US imports of fish, seafood and related products, alcoholic beverages and non-industrial diamonds. This includes products that are symbols of Russia, such as vodka and caviar.
The trade in the banned items now moved around $550 million last year. The value is symbolic, as trade between the US and Russia moves around US$ 700 billion a year.
The order also mandates that the United States stop exporting luxury goods to Russia, and also vetoes new American investments in Russia’s economy. The details of the measurements however, are yet to be detailed.
In recent weeks, the US government has announced a series of tough measures against Russia’s economy, which have caused the value of the ruble to plummet and several multinationals to stop operating in the country. Despite international pressure, however, Putin keeps the invasion of Ukraine going. The war has already caused more than 2.5 million Ukrainians to leave their country, according to a UN estimate.
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