President BidenJoe BidenBiden expected to call for nixing normal trade relations with Russia Senate averts shutdown, passes .6B in Ukraine aid GOP senators urge Biden to expedite transfer of airpower, air defense systems to Ukraine MORE announced Friday that the United States and other allies would move to revoke the “most favored nation” trade status for Russia in response to its military invasion of Ukraine.
In remarks from the Roosevelt Room, Biden said the coordinated move would deal a “another crushing blow to the Russian economy.”
In the U.S., the move requires an act of Congress. Biden said Friday that Speaker Nancy PelosiNancy PelosiOvernight Energy & Environment — House agrees to ban Russian oil Jayapal offers solution to impasse on COVID aid: Make all states pay Lionel Richie receives Library of Congress’s Gershwin Prize MORE (D-Calif.) had “agreed to hold off” on a bill in the House ending normal trade relations with Russia until he could get U.S. allies behind a plan to do so together and signaled there was a bipartisan agreement to introduce legislation.
“Unity among our allies is critical important,” Biden said.
The Group of Seven (G-7) countries will all announce plans to revoke Russia’s “most favored nation” status on Friday, the White House said.
The move will open the door to the U.S. and other countries imposing higher tariffs on Russian goods, which will further hamper the Russian economy.
Biden thanked bipartisan leaders in the House and Senate, including House Minority Leader Kevin McCarthyKevin McCarthyRussian invasion scrambles Democrats’ agenda More than one-quarter of Congress has had COVID-19 McCarthy: Greene, Gosar could still return to committees despite attending white nationalist event MORE (R-Calif.) and Senate Minority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellGOP senators urge Biden to expedite transfer of airpower, air defense systems to Ukraine Lawmakers feast on pork in omnibus Russian invasion scrambles Democrats’ agenda MORE (R-Ky.), for their work on the issue.
“The free world is coming together to confront [Russian President Vladimir] Putin. Our two parties here at home are leading the way,” Biden said.
“And with that bipartisan cooperation, I’m looking forward to signing into law the bill revoking PNTR,” Biden said, referring to the status of permanent normal trade relations.
Biden also announced that his administration would sanction more Russian oligarchs and boost coordination with G-7 countries to seize their assets.
Additionally, Biden said that the G-7 would agree to deny Russia the ability to borrow from the International Monetary Fund and the World Bank.
“Putin must pay the price,” Biden said. “He cannot pursue a war that threatens the very foundations — which he is doing — the very foundations of international peace and stability and then ask for financial help from the international community.”
The Biden administration has closely coordinated penalties on Russia with European allies, and Friday’s announcement was no exception.
The U.S. and its allies have imposed sanctions on Russian banks and oligarchs and barred some Russian banks from using the SWIFT international financial communication system. Earlier this week, Biden announced plans to ban U.S. imports of Russian energy as he faced bipartisan calls in Congress to do so.
The Russian economy has taken a serious hit, with the ruble’s value declining considerably.
Many large businesses have also suspended operations in Russia, further isolating the country over the military campaign against Ukraine.
—Updated at 11:05 a.m.