Russia-Ukraine conflict: G7, Joe Biden, EU announce sanctions on Russia

The United States, European Union and other allies have escalated their economic pressure over Russia on Friday, moving to strip Moscow of privileged trade and economic treatment among other steps to punish it for its invasion of Ukraine.

In a new action, US President Joe Biden said it will further hobble a Russian economy already weighed down by previously announced international sanctions that have cratered the rouble and forced the stock market to close.

Also read: Watch | Tiger cubs rescued from war-torn Ukraine are safe in Poland

Referring to ending normal trade relations, Biden said, “Doing it in unison with other nations that make up half of the global economy will be another crushing blow to the Russian economy that’s already suffering very badly from our sanctions.”

The measures announced by the EU, the United States and other G7 allies amount to a fourth set of sanctions against Russia over the February 24 invasion.

Also read: Why the war in Ukraine will hurt poor nations importing grain: Explained

They include efforts seeking to end Moscow’s “most-favoured nation” trade status, opening the door to banning or imposing punitive tariffs on Russian goods and putting Russia on a par with North Korea or Iran.

They will also ban luxury goods from being exported from their countries to Russia, designed as a blow to Russian elites.

As a first step, the European Union will prohibit imports of iron and steel sector goods from Russia. European Commission President Ursula von der Leyen said the EU was also working to suspend Russia’s membership rights of leading multilateral institutions, including the International Monetary Fund and the World Bank, and crack down on its use of crypto-assets.

Also read: Kharkiv nuclear facility shelled by Russia safe, but poses radiation risks

A US ban on luxury exports to Russia and its ally Belarus – including high-end watches, vehicles, clothes, alcohol and jewellery – takes effect immediately, the Commerce Department said.

The US Congress would need to pass legislation to revoke Russia’s trade status, and lawmakers have been moving in that direction. The United States also moved to shut down development funds while announcing a ban on imports of Russian seafood, vodka and diamonds, too. The White House said Biden would ban U.S. investment in Russia beyond the energy sector.

Also read: Ukraine blames Russia for Melitopol mayor’s abduction, calls it ‘war crime’

Top U.S. imports from Russia included mineral fuels, precious metal and stone, iron and steel, fertilisers and inorganic chemicals, all goods that could face higher tariffs once Congress acts to revoke Russia’s favoured nation trade status.

Meanwhile, Britain imposed sanctions on 386 members of the Duma and also said it would seek to ban the export of luxury goods to Russia. The EU has already sanctioned the same group of lawmakers.