US, allies to revoke ‘most favored nation’ status for Russia
- Along with the European Union and the Group of Seven countries, the US will move to revoke the ‘most favored nation’ trade status for Russia over its invasion of Ukraine.
Motive Behind the move
- To revoke the permanent normal trade relations with Russia.
- Stripping 'most favored nation' status from Russia would allow the US and allies to impose tariffs on Russian imports.
- This would increase the isolation of the Russian economy in retaliation for the invasion.
Sanctions on Russia till date
- Suspension from the Bank for International Settlements.
- The US, EU and UK have banned Russian people and businesses.
- Some Russian banks are being removed from the international financial messaging system Swift.
- Sanctions have been imposed on wealthy business leaders known as oligarchs.
- All Russian flights have been banned from US, UK, EU and Canadian airspace.
- The US banned all Russian oil and gas imports.
- Germany has put on hold permission for the Nord Stream 2 gas pipeline.
Tough road ahead for Russia
- Sanctions are blowing holes in the Russian economy.
- The rouble has collapsed, bond default risk has spiked, the Moscow stock exchange has closed and Russian oil trades at ever-deeper discounts to Brent.
- As the number of total sanctions reached to 5,532, Russia's number now outranks Iran's 3,616 sanctions, displacing Tehran from the top position.