As Russia continues its invasion of Ukraine, the U.S. and its allies continue to add sanctions against the country which is effectively crippling its economy and taking its toil on the oligarchs who have benefited from free trade and more. The Friday executive order announced by President Biden blocks both the export and import of luxury goods between the two countries.
The executive order by Biden targets important sectors of the Russian economy. They include seafood, alcohol and non-industrial goods. Caviar or fish eggs and vodka are luxury items that have a distinct Russian identity, whose exports add to over a billion dollars to the country’s economy.
The administration mentioned that the ban was enforced to ensure that American citizens did not underwrite Putin’s war in Ukraine by purchasing these high value goods.
The order also prohibits U.S. companies from exporting what is termed as “luxury items” to any person in Russia. The items that are banned from export include,high end watches,couture and designer clothes,expensive liquor, and
luxury vehicles.
All these American goods are imported by rich Russian oligarchs who maintain a high lifestyle with Western luxury goods. The export restrictions will cost the nation roughly $550 million each year.
In his speech at the White House on the same day, President Biden that these were “not the last steps” that they were taking. He called Putin an “aggressor” and said said that he “must pay the price.”
On Friday, President Biden also called for the nation to evoke the status of “most favored nation” (MFN) against Russia. The president requires an act of Congress before the trade classification can be revoked. However, the move is supported by both Democrats and Republicans so there will be no issues. Speaker Nancy Pelosi said that the House will pass legislation that will revoke Russia’s MFN status, next week. On Friday, Majority Leader, Chuck Schumer told reporters that the Senate was also working on a bill that could be passed quickly.
Last week, Canada removed Russia from most favored nation classification. The European Union and the Group of Seven nations are expected to follow suit, according to President Biden. These moves have been taken by the U.S. and its allies to isolate Russia from international commerce.
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