Beautiful Virgin Islands

Wednesday, Aug 27, 2025

US to ban Russian diamond and vodka imports

US to ban Russian diamond and vodka imports

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.

The US, European Union and other allies also 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.

Western allies announced further economic retaliation on Friday.

The European Union said it would ban imports of key Russian iron and steel products and bar new energy investments in the country, while the UK put sanctions on hundreds of Russian politicians.

The US, EU and UK also said they would cut off shipments of luxury goods to Russia.

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

Revoking 'most favoured nation' status


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

Stripping Russia of that status clears the way for higher tariffs on key products it sells such as mineral fuels, fertilisers and metals.

Mr Biden said he was coordinating the plans with the European Union and other advanced economies, including Canada and Japan, each of which will 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.


Most Favoured Nation (MFN) is a status conferred by membership of the World Trade Organisation. It might sound as though it confers special advantages, but that's not really the case.

In fact, it is a baseline designed to ensure all World Trade Organisation members are treated equally, unless they are members of a specific free trade area or agreement. Under normal circumstances, it limits countries' ability to impose trade barriers against one another - or offer individual countries special concessions.

By removing this status from Russia, G7 countries will be able to target its exports with punitive tariffs, or taxes. In fact one of them, Canada, has already done so. Last week it imposed tariffs of 35% on all products coming from Russia and its compliant ally, Belarus.

In order to do this, Canada relied on an exemption contained in one of the WTO agreements, which allows members to take action they consider necessary to protect their "essential security interests". It is likely the others will do the same.

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

"Russia cannot grossly violate international law and expect to benefit from being part of the international economic order," the G7, a group of seven advanced economies including the UK, said in a statement.

The US ban on key Russian imports will deny Mr Putin more than $1bn in revenue, the White House said, while the ban on US exports of luxury goods hits trade worth about $550m per year.

That is just a fraction of the roughly $28bn worth of trade the US and Russia exchanged in 2019.

Mr Biden promised further measures, including tightening sanctions on oligarchs and their families.

"We're going to continue to squeeze Putin," Mr Biden said. "He is the aggressor and... must pay the price."

Economists say the sanctions previously announced will throw Russia into a severe economic recession this year. But it is not clear that the economic disarray has altered Mr Putin's military ambitions.

At a press conference on Thursday, White House spokeswoman Jen Psaki was asked when the weight of the sanctions might lead to a change in Mr Putin's actions.

"Our objective of course is to bring an end to this conflict, she said. "In terms of when that will happen, I'm unfortunately not in the mind of President Putin.... When it will change his calculus, I can't give a prediction of that."

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
×