Joe Biden announced that he would suspend imports of products from “key sectors of the Russian economy, including seafood, vodka and diamonds.” The export of luxury goods will also be banned.
Article written
Published on 03/11/2022 08:16 PM Updated on 03/11/2022 08:40 PM
Reading time: 1 min.
The United States pushed further to lower sanctions against Moscow by deciding on Friday, March 11, to exclude Russia from the reciprocity regime governing world trade, paving the way for punitive customs tariffs in response to the invasion of Ukraine. “The United States, our allies and partners continue to work together to increase economic pressure on [Vladimir Poutine] and further isolate Russia on the world stage,” the US President said from the White House.
Joe Biden also announced a ban on imports of “key sectors of the Russian economy, including seafood, vodka and diamonds.” Following this announcement, the US Department of Commerce announced a ban on the export of luxury goods, including jewelry, cars, clothing, and antiques, to Russia and Belarus.
The European Union followed in the footsteps of Washington, announcing in turn a ban on the export of its own luxury goods. The EU and the G7 have also joined Washington in ending the so-called “most favored nation” status enjoyed by Moscow, which promotes free trade in goods and services.
As for the United States, Russia would thus join Cuba and North Korea, the only countries excluded by a major world power from the principle of reciprocity that underpins most international trade relations.
Trade between the US and Russia is certainly limited, but this decision is a new blow to the Russian economy. Last year, the United States imported about $30 billion worth of Russian goods, including $17.5 billion worth of crude oil, which Washington just imposed an outright embargo on.
Share on Twitter Share on Facebook Share via email Share link