Washington, 12 March 2022 (TDI): The United States has levied a new round of sanctions on Russia as the invading country continues its advances into Ukraine. This decision was made on Friday and will have a significant impact on the economy of Russia.
The United States and its allies, including the United Kingdom and parts of Europe have revoked Russia’s “most favored nation” status as a punishment for the Russian government’s continued invasion of Ukraine. This revocation allows the United States to impose higher tariffs on Russian goods.
Joe Biden, President of the United States of America said that this step was taken in coordination with NATO allies, the European Union, and the G7. He added that this decision was taken to put further economic pressure on Russia and to isolate the country from the global stage. He noted that revoking Russia’s MFN status is going to make it hard for the country to do business in the United States.
First, each of our nations will take steps to deny Russia “Most-Favored Nation” status.
It will make it harder for Russia to do business with the U.S. And doing it in unison with nations that together make up half of the global economy, will be another crushing blow to Russia.
— President Biden (@POTUS) March 11, 2022
Taking this step with half of the world’s economy will deal a major blow to the already crumbling Russian economy. Joe Biden added that wealthy individuals close to Vladimir Putin, The President of Russia will also be targeted with the US going after their assets and will make it difficult for them to buy luxury goods.
Additionally, the United States has also banned the import of several Russian goods including Diamonds, certain types of alcohol, and seafood. This will deny Russia more than $1 billion in export revenue, said the Whitehouse.
Most Favored Nation Status (MFN)
The Most Favored Nation Status is a status given to top international trading partners to ensure non-discriminatory trade between two countries. A country that is given an MFN status receives concessions, privileges, and immunity in trade agreements by the issuing country. MFN eases trade laws, ensures equal treatment of disadvantaged countries, and increases free trade.
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