US Biden: "Stripping Russia of 'Most-Favored-Nation' Status... Banning Vodka and Seafood Imports"

[Image source=EPA Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] The Biden administration in the United States is stripping Russia, which invaded Ukraine, of its Most Favored Nation (MFN) status. Imports of luxury goods such as vodka, seafood, and diamonds will also be banned.

President Biden announced additional sanctions against Russia during a speech at the White House on the 11th (local time), stating, "The United States and its allies will continue to cooperate on economic pressure to deepen Russia's isolation."

President Biden first declared that, together with the Group of Seven (G7) and North Atlantic Treaty Organization (NATO) member countries, the U.S. will terminate Russia's Permanent Normal Trade Relations (PNTR) and revoke its Most Favored Nation status. PNTR refers to the application of MFN tariffs in trade with the U.S. without regular congressional review. If Russia loses its MFN status, high tariffs could be imposed on Russian products.

President Biden said, "Terminating PNTR will make it more difficult for Russia to trade with the United States," adding, "It will be another devastating blow to the Russian economy, which is already suffering from our sanctions."

According to the U.S. Trade Representative (USTR), the trade volume between the U.S. and Russia was approximately $28 billion (34.5 trillion KRW) as of 2019. The U.S. mainly imports mineral fuels, precious metals, steel, fertilizers, and chemical weapons from Russia. Relatedly, U.S. House Speaker Nancy Pelosi confirmed plans to process a bill next week to repeal Russia's PNTR status.

In addition, President Biden imposed export bans targeting Russia's major exports. He specifically mentioned "seafood, vodka, and diamonds." The White House expects this to impact about $1 billion worth of Russian exports.

Furthermore, additional sanctions were announced against the oligarchs?Putin's close power circle and pro-Putin emerging tycoons. Yuri Kovalchuk and others were included in the list of those subject to new sanctions.

Moreover, President Biden emphasized that the G7 is also pursuing measures to block borrowing from multilateral financial institutions such as the International Monetary Fund (IMF) and the World Bank (WB). He raised his voice, saying, "President Putin is an aggressor and must pay the price." Previously, the U.S., along with European allies, announced economic sanctions including exclusion from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system. Subsequently, the U.S. independently introduced an oil import ban on Russia, increasing pressure on Russia.

However, President Biden reaffirmed that there will be no direct military confrontation with Russian forces inside Ukraine. He mentioned, "A direct confrontation between NATO and Russia would be World War III." In response to questions about the possibility of Russia using chemical weapons, he strongly warned, "(If chemical weapons are used) Russia will pay a severe price."

This content was produced with the assistance of AI translation services.