The president of the United States, Joe Biden, announced this Friday the ban on importing seafood, vodka and diamonds from Russia to the US. as a sanction for the Russian invasion of Ukraine. According to a spokesman for the Biden Administration, these sanctions will punish Russia with losses of “over a billion dollars in revenue” and “will ensure that American citizens do not finance Putin’s war.”
Specifically, Biden has revoked “most favored nation” statusto Russia on the commercial level, which will deny the Kremlin the benefits of belonging to the World Trade Organization (WTO). In another statement issued by the White House, the US announces that the G7 countries also plan to agree that Russia will no longer be able to obtain financing from multilateral financial institutionssuch as the International Monetary Fund (IMF) and the World Bank.
We’re also taking the further step of banning the import of goods from several signature sectors of Russia’s economy including seafood, vodka, and diamonds.
The G7 will also seek to deny Russia the ability to borrow from leading multilateral institutions.
— President Biden (@POTUS) March 11, 2022
“We are also taking another step to ban the import of products from various emblematic sectors of the Russian economyincluding seafood, vodka and diamonds. The G7 will also seek to deny Russia the ability to borrow from major multilateral institutions,” Biden tweeted.
The withdrawal of “most favored nation” must be approved by the US Congress
In his appearance, the American president has indicated that the sanctions will make it more difficult for Russians “to buy luxury products” made in the United States such as “high-end watches and clothing, luxury vehicles, high-priced alcohol, jewelry and other goods frequently purchased by Russian elites.”
Despite having been announced by Biden, the withdrawal of the so-called “most favored nation” treatment from Russia must be approved by the US Congresssomething that is expected to go ahead without a problem with both Democratic and Republican support. Ukraine and Canada They have already withdrawn Russia from the status of “most favored nation”, one of the fundamental principles of international trade that the World Trade Organization (WTO) oversees. Until now, Moscow benefited from a “most favored nation” trade status, which allows the free exchange of some goods and services.
In his appearance, Biden has also warned Russian President Vladimir Putin that his country will pay “a high price” if it uses chemical or biological weapons in Ukraine, while warning that Washington will defend “every centimeter” of the territory from NATO allies, but insisted: “NATO’s direct confrontation with Russia would be World War III, it is something we must strive to avoid.”
The European Union will also impose the veto on luxury products
The European Union will ban the export of its luxury products to Russia in an attempt to deal “a blow to the Russian elite”, as part of the new sanctions agreed with the G7 countries, the president of the European Commission, Ursula von der Leyen, announced this Friday.
“Those who support Putin’s war machine should no longer be able to enjoy their lavish lifestyles while bombs are falling on innocent people in Ukraine,” he added in a statement.