# Biden, G7 revoke Russia’s favored nation trading status Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-03-11 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: President Biden Announces Bans on Russian Goods and Meta Description: President Biden announces G7 nations will revoke Russia's 'most favored nation' trade status and impose bans on Russian seafood, alcohol and URL: https://financedigest.com/biden-g7-revoke-russias-favored-nation-trading-statushtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-03-11t160337z2lynxnpei2a0u8rtroptp4usa-biden-democrats-1736815973785-compressed.jpg) By Steve Holland and Andrea Shalal WASHINGTON (Reuters) -President Joe Biden said on Friday the G7 industrialized nations will revoke Russia’s “most favored nation” trade status, and announced a U.S. [ban on Russian](https://www.financedigest.com/oil-jumps-4-as-eu-proposes-ban-on-russian-oil.html "Oil jumps 4% as EU proposes ban on Russian oil") seafood, alcohol and diamonds, the latest steps to punish Moscow over its invasion of Ukraine. The move would deliver “another crushing below” to Russia, as it continues its aggression in Ukraine, Biden said. President Vladimir Putin is an “aggressor, the aggressor,” Biden said, and he must [“pay a price.”](https://www.financedigest.com/shell-energy-to-pay-for-overcharging-price-cap-customers-ofgem.html "Shell Energy to pay for overcharging price cap customers -Ofgem") He also said the United States would add new names to a list of [Russian oligarchs who are sanctioned](https://www.financedigest.com/new-u-s-sanctions-for-russian-bank-oligarchs-crypto-miner-bitriver.html "New U.S. sanctions for Russian bank, oligarchs, crypto miner BitRiver"), and ban the export of luxury goods to Russia. Those are the [latest steps we’re taking but they’re not the last steps we’re taking.” Biden](https://www.financedigest.com/biden-orders-probe-of-latest-ransomware-attack.html "Biden orders probe of latest ransomware attack") said. [Russia calls its actions in Ukraine a “special operation”](https://www.financedigest.com/mcdonalds-to-sell-russia-restaurants-to-local-operator-rebrand.html "McDonald’s to sell Russia restaurants to local operator, rebrand"). Stripping Russia of its favored nation status paves the way for the United States and its allies to impose tariffs on a wide range of Russian goods, which would further ratchet up pressure on an [economy that is already heading into a “deep recession.”](https://www.financedigest.com/world-bank-warns-global-economy-could-easily-tip-into-recession-in-2023.html "World Bank warns global economy could easily tip into recession in 2023") \[L5N2VE2S1\] The coordinated moves by Washington, [London and other allies come on top](https://www.financedigest.com/4-for-the-price-of-1-what-you-can-buy-in-the-uks-top-northern-cities-for-the-price-of-a-london-pad.html "4 for the price of 1: What you can buy in the UK’s top northern cities for the price of a London pad") of a host of unprecedented sanctions, export controls and banking restrictions aimed at pressuring Putin to end the largest war in Europe since World War Two. Each country must implement the [change in Russia’s trading status](https://www.financedigest.com/pelosi-praises-taiwan-says-asian-trip-wasnt-to-change-status-quo.html "Pelosi praises Taiwan, says Asian trip wasn’t to change status quo") based on its own national processes, administration sources said. In the United States, removing Russia’s “Permanent Normal Trade Relations” status will require an act of Congress, but lawmakers in both houses – and on both sides of the [political aisle – have already signaled their support](https://www.financedigest.com/uk-financial-watchdog-urges-political-support-for-crypto-bans.html "UK financial watchdog urges political support for crypto bans"). The White House will work with lawmakers on legislation to revoke [Russia’s status](https://www.financedigest.com/u-s-congress-votes-to-strip-russia-of-most-favored-trade-status-ban-its-oil.html "U.S. Congress votes to strip Russia of ‘most favored’ trade status, ban its oil"), administration sources said. Unprecedented, sweeping sanctions slapped on Russia’s banks and elites, along with export controls on a raft of technologies, have already caused the Russian economy to crater, and the International Monetary Fund is now predicting that it will plunge into a “deep [recession” this year](https://www.financedigest.com/uk-to-avoid-recession-this-year-but-outlook-still-weak-bcc-says.html "UK to avoid recession this year but outlook still weak, BCC says"). In 2019, Russia was the 26th [largest goods trading](https://www.financedigest.com/at-chinas-largest-trade-fair-exporters-worry-about-world-economy.html "At China’s largest trade fair, exporters worry about world economy") partner of the United States, with some $28 billion exchanged between the two countries, according to the U.S. [Trade Representative’s office](https://www.financedigest.com/uaes-adnoc-to-open-swiss-trading-office-next-year.html "UAE’s ADNOC to open Swiss trading office next year"). Top imports from Russia included mineral fuels, [precious metal](https://www.financedigest.com/u-s-money-reserve-reviews-real-talk-about-diversifying-with-precious-metals.html "U.S. Money Reserve Reviews: Real Talk About Diversifying With Precious Metals") and stone, iron and steel, fertilizers and inorganic chemicals, all goods that could face higher tariffs once Congress acts to revoke Russia’s favored nation trade status. (Additional reporting by Jason Lange and David Morgan, Susan Heavey. Editing by Heather Timmons and Alistair Bell) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---