The US ended normal trade relations with Russia and opened the door to punitive tariffs

Through a vote in Congress, the United States officially revoked the trade status of Russia and Belarus on Thursday in response to the war in Ukraine, thus paving the way for punitive tariffs against these two countries. In addition, it voted in favour of translating the veto on the import of Russian oil into law.

This measure, which was introduced by President Joe Biden in mid-March, received strong bipartisan support in Congress. The House of Representatives followed the example of the Senate hours earlier, which passed both bills unanimously, with 100 votes in favor and none against. With the backing of both houses, the two bills are now expected to be enacted by President Joe Biden.

Biden had announced the initiative in a speech last month in which he argued that Russia should “pay the price” for bloodshed in Ukraine, where Russians have denied allegations of committing atrocities.

“Putin must absolutely be held accountable for the detestable and despicable war crimes he is committing against Ukraine: the images we have seen of that country... are simply pure evil,” said Senate majority leader Chuck Schumer.

Rep. Richard Neal, a Democrat for Massachusetts, said innocent Ukrainians were being massacred even while lawmakers met.

“We don't have time to waste and we must immediately punish Vladimir Putin,” Neal said. “What we have witnessed in Bucha over the past 72 hours more than justifies the positions we have taken before and we will be more assertive and energetic in the future.”

Permanent normal trade relations (PNTR), as they are known in the United States, is a key principle of the World Trade Organization, the so-called most-favoured-nation status. It requires countries to guarantee each other equal tariff and regulatory treatment.

The latest trade sanctions - which also apply to Belarus, an ally of Russia - culminate several rounds of measures aimed primarily at breaking Moscow's economic and financial ties with the rest of the world.

They have included a ban on imports of Russian oil, the embargo on the assets of billionaires linked to Putin and the freezing of the country's reserves.

Turning the veto on Russian energy into law means that the measure could last longer, as Biden will not have the power to withdraw that punishment without the support of Congress.

On Wednesday, the country took steps to block foreign investment in Russia and state-owned enterprises and applied new sanctions on the country's banks and senior officials.

Secretary of State Antony Blinken told NBC News that global punishments had plunged the Russian economy into a “deep recession.”

“And what we are seeing is a likely contraction of the Russian economy of around 15%,” he said.

From an energy point of view, the US depends much less than Europe on Russia and imports only 8% of the oil it consumes from that country, so it can replace it with domestic production or imports from other nations.

Russia is also not one of the main trading partners of the US, but bilateral exchange is remarkable: in 2019, Russian exports to the North American country amounted to $22.3 billion, according to the Office of the US Trade Representative.

(With information from EFE, AFP, AP)

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