Arab Press

بالشعب و للشعب
Friday, Aug 22, 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

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×