The United States bans imports of Russian diamonds and vodka.

US President Joe Biden has banned imports of Russian diamonds, seafood, and vodka in response to Russia's recent war in Ukraine. The United States, European Union, and other allies are also planning to strip Russia of its equal trading partner, paving the way for more economic penalties. These measures complement the sanctions that economically isolated Russia after the invasion.

Its currency fell as global companies rushed out of the country. Russian President Vladimir Putin compared Western sanctions against banks and oligarchs with a declaration of war. Moscow has also threatened to nationalize factories or factories whose work has been suspended. The Western Allies announced further economic revenge on Friday.

The European Union has declared it will ban imports of Russia's leading iron and steel products and ban new energy investments, while Britain has imposed sanctions on hundreds of Russian politicians. The United States, European Union, and Britain have also announced that they will stop supplying luxury goods to Russia. Biden said the latest move would be "another blow to the Russian economy."

Under international rules, defining a country as a "most favored nation" offers reciprocal trade privileges such as lower tariffs and taxes imposed on borders.

Stripping Russia of that status paves the way for higher tariffs on the essential products it sells, such as mineral fuels, fertilizers, and metals. Biden said he coordinated plans with the European Union and other developed economies, including Canada and Japan, each taking similar steps.

In the United States, Congress, which must act for the measure to take effect, has voted in favor of the action. Most Favored Nation (MFN) is the status conferred by membership in the World Trade Organization. It may sound like it offers unique benefits, but it isn't.

It is a basis designed to ensure that all members of the World Trade Organization are treated equally unless they are members of a particular area or free trade agreement. Under normal circumstances, this limits the ability of countries to set trade barriers against one another - or to offer special discounts to individual countries.

By removing this status from Russia, the G7 countries can redirect their exports with punitive tariffs or taxes. One of them, Canada, has already done so. Last week the government imposed a 35% tariff on all products from Russia and its compatible ally, Belarus. Canada relies on exceptions in one of the WTO agreements, allowing members to take any action they deem necessary to protect their "nuclear security interests." Others will likely do the same.