The Senate and House of Representatives have imposed further sanctions on Russia.
(Photo: Reuters)
new York Because of the Ukraine war, the United States downgraded Russia and Belarus as trading partners. The Senate and House of Representatives stripped both countries of permanent normal trade relations (PNTR) status. Both chambers of Congress adopted a corresponding bill.
The Senate voted 100-0 to suspend normal trade relations. The vote in the House of Representatives was 420 to three. Only three Republicans close to Trump, Marjorie Taylor Greene from Georgia, Thomas Massie from Kentucky and Matt Gaetz from Florida voted against.
In addition, both chambers of Congress approved the import ban on Russian oil.
With the end of normal trade relations, higher tariffs on Russian goods are possible. Previously, trade relations with Russia had enjoyed trade concessions under the World Trade Organization (WTO), which are now being lifted. To do this, Congress had to strip Russia of its “most favored nation” status. This principle stipulates that countries in the WTO should be treated equally when it comes to tariffs and other regulatory measures.
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The most favored nation (MFN) principle means that members of the World Trade Organization must give all other members equal access to their market – with few exceptions. As a rule, tariffs cannot be arbitrarily set higher for a specific country.
Now imports of platinum, chemicals, iron and steel can also be restricted
When national security is at stake, exceptions can apply. The provisions state that countries can take measures “which they consider necessary to protect their essential security interests (…) in time of war or other serious crises in international relations”.
Trade relations between the United States and Russia are not particularly strong: according to the US government, Russia was only the 20th largest supplier of goods to the United States in 2019, with oil, gas, metals and chemicals being the main imports. The USA has already completely stopped imports of Russian oil and gas.
Nevertheless, the downgrading of trade relations is symbolic. Washington has already banned the import of oil, vodka, diamonds and caviar. Now imports of platinum, chemicals, iron and steel can also be restricted.
Formally cutting off normal trade ties with Russia is the right thing to do “because it’s another blow to Putin’s economy,” said Senate Democratic-majority leader Chuck Schumer. “Holding Putin accountable for his horrific attacks on innocent civilians is a crucial part of any strategy,” he said.
New sanctions against Aeroflot
There were also new penalties in the aviation sector: On Thursday, the government in Washington banned US exports to the three Russian airlines Aeroflot, Utair and Azur Air. This means that the airlines will no longer receive deliveries of goods from the United States, including parts for the maintenance of their machines.
“These restrictions are of great importance as it’s obviously difficult to keep flying if you can’t service your planes,” said Deputy Secretary of Commerce Matthew Axelrod. As a result, aircraft fleets would no longer be able to fly, either internationally or domestically, in the foreseeable future, because they not only lacked spare parts but also the associated services.
The Department of Commerce can grant exceptions to the export ban if the safety of a flight is at risk. The order is valid for 180 days but can be extended.
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