Russia has lost its status as a preferred trade partner with nations around the world in response to its continued military bombardment of Ukrainian cities.
A host of western governments announced the plans for punitive tariffs on Moscow last Friday (March 11th 2022) in a joint statement designed to further isolate Russia from its trade ties.
The G7 said it will be stripping Russia of ‘Most Favoured Nation’ (MFN) standing under World Trade Organization rules, which had previously ensured it could trade on the best possible terms, enjoy low tariffs and be permitted the highest possible imports.
Now, Russian products such as vodka could incur border taxes for importers that are aimed at increasing prices and discouraging trade.
“We are united in our determination to hold President Putin and his regime accountable for this unjustified and unprovoked war that has already isolated Russia in the world,” a joint statement from the G7 said.
US president Joe Biden swiftly followed suit and took steps to remove America’s version of MFN, which is known as ‘permanent normal trade relations’, as well as banning imports of Russian seafood, diamonds and vodka.
“Putin is an aggressor. He is the aggressor. And Putin must pay the price,” he added.