US President Biden.Photo: Dazhi Image/Associated Press
Russia’s violation of Ukraine has been severely sanctioned by the international community. US President Biden announced at the White House today to revoke Russia’s most-favored-nation (MFN) status, also known as “Permanent Normal Trade Relations” (Permanent Normal Trade Relations, PNTR) status, which means that Washington will Could raise tariffs on Moscow goods. The U.S. hopes to further isolate Russia from the world, hit the Russian economy hard, and pay the price for a military invasion of Ukraine.
Biden, who just ended a phone call with Ukrainian President Volodymyr Zelensky, said MFN means the two countries agree to trade on the best possible conditions, namely low tariffs, few barriers to trade and imports. The withdrawal of Russia’s permanent normal trade relations will make it harder for Russia to trade with the United States and other countries that are doing the same, and it will deal another severe blow to the Russian economy, which has been battered by sanctions.
Biden mentioned that Ukrainians fought bravely to defend their homeland, and he told Zelensky once more that the United States stood with the Ukrainian people. As Russian President Vladimir Putin’s relentless attacks continue, the United States, along with allies and partners, continues a concerted effort to increase economic pressure on Putin, further isolating Russia on the global stage. After Russia loses the most-favored-nation status granted by the United States, Russian companies will be classified as similar to Cuban and North Korean companies, and the United States can significantly increase tariffs on them.
U.S. Trade Representative Katherine Tai said in a statement that today’s action would remove Russia’s most-favored-nation status and deprive Russia of all the benefits of joining the World Trade Organization (WTO). Putin and his administration must pay a heavy economic and diplomatic price for the invasion of Ukraine, and the United States will work with other WTO members to further isolate Russia in multilateral institutions.
In addition to canceling Russia’s most-favored-nation status, Biden also announced to expand the list of sanctions once morest Russian oligarchs, tycoons and their families, strengthen coordination among the seven major industrialized nations (G7), and “target and seize their ill-gotten gains” to bear the pain of sanctions The United States will also prohibit the export of luxury goods including high-end watches, luxury RVs, and jewelry to Russia, and prohibit the import of seafood, vodka and spirits, and non-industrial diamonds from Russia; it will no longer provide Russia with borrowing privileges in the multilateral trading system.
Since Russia invaded Ukraine, the United States has launched several waves of sanctions, including export controls to Russia, expelling certain Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system, and imposing oil and energy bans on Russia. Putting enormous pressure on Putin and the Russian authorities to end the biggest war in Europe since World War II. The measure still needs to be approved by the U.S. Congress, but U.S. lawmakers in both parties are expected to pass quickly over Russia’s invasion of Ukraine.
