US to ban Russian diamond and vodka importson March 11, 2022 at 4:42 pm

US President Joe Biden has announced a ban on imports of Russian diamonds, seafood and vodka in the latest response to Russia’s war in Ukraine.

He also said Western allies plan to revoke Russia’s status as an equal trade partner, paving the way for further economic punishment.

The moves add to sanctions that have isolated Russia economically since the invasion.

Its currency has collapsed, while global firms rush to exit the country.

Russian President Vladimir Putin has likened Western sanctions on banks and oligarchs to a declaration of war. Moscow has also threatened to nationalise production plants or factories where work has been suspended.

Mr Biden said the latest steps will be “another crushing blow to the Russian economy”.

Under international rules, designating a country a most favoured nation provides reciprocal trade privileges such as lower tariffs, taxes imposed at the border.

The US is coordinating the move to strip Russia of its status along with the European Union and other advanced economies, including Canada and Japan, which Mr Biden said would take similar steps.

In the US, Congress, which must act for the move to go into effect, has already declared itself in favour of the move.

In addition, Mr Biden said Western allies planned to cut Russia off from accessing finance from international organisations such as the World Bank and International Monetary Fund.

The US ban on key Russian imports will hit $1bn worth of trade, the White House said.

Mr Biden said the US would ban US exports of luxury goods to Russia and further sanction oligarchs and their families.