The economic pressure campaign Russia for the invasion of Ukraine it continues to escalate as the war also escalates. This Friday, United States and the rest of the economies G7 they have announced steps directed to withdraw to Moscow benefits in trade relationsurging the implementation of national mechanisms that would end Russia’s status as a “most favored nation” inside of World Trade Organization and they would open the door to higher tariffs and limitations on their exports.
Likewise, they will seek to deny Russia the possibility of obtaining financing from multilateral institutions such as the International Monetary Fund and the World Bank. From the European Union the president of the European Commission, Ursula von der Leyen, has also announced that “a fourth package of sanctions Which will allow further isolate Russia from the world economy“.
Vodka, caviar and diamonds
In the US, the announcement was made by the president, Joe Biden, in a brief appearance at the White House, in which he assured that “(Vladímir) Putin is the aggressor and must pay the price”.
Later today, together with the other nations of the G7 and the EU, we will jointly announce several new steps to squeeze Putin and to hold him accountable for his aggression against Ukraine.
I want to speak to a few key points.
— President Biden (@POTUS) March 11, 2022
Four days after signing the executive order imposing a ban on imports of Russian energy into the United States, Biden has announced the extension of the ban on the purchase of seafood, alcohol and diamonds Russians, a veto that the White House estimates could have a negative impact of more than $1 billion for Russia. In addition, the US bans the export of luxury products to Russia and expands the list of sanctioned Russian oligarchs. The president, who has already imposed a veto on US investment in the Russian energy sector, will also have the authority to veto new investments in other sectors of the Russian economy.
Both in the US and in other countries change the status of the trade relationship with Russia must be approved or consulted with the legislative powers. In Washington, Biden has the support of both parties in Congress for the measure, where in fact the congressmen had already proposed a bill to break with both Russia and Belarus what in the US is called “permanent normal trade relations” .
That potential change has more impact for Russia in Europe, where it sells the 41% of its exports, what in USA, where do they arrive only 5% of its international sales. In Europe, trade relations with Russia moved 700,000 million dollars in 2021, while in the US the figure was 26,000 million, 60% of that amount in energy products whose import was already vetoed on Monday.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.