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U.S. Congress votes to strip Russia of ‘most favored’ trade status, ban its oil
Home > Top Stories > U.S. Congress votes to strip Russia of ‘most favored’ trade status, ban its oil
Global Banking & Finance Review®
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By Patricia Zengerle
WASHINGTON (Reuters) – The U.S. Congress voted to impose further economic pain on Russia over the invasion of Ukraine on Thursday, passing one measure to remove its “most favored nation” trade status and another to ban oil imports.
The Senate voted 100-0 in favor of the measure removing Permanent Normal Trade Relations (PNTR) status for both Russia and its close ally Belarus. Shortly afterward, it backed the energy measure, also by a 100-0 tally.
Senate approval sent the legislation to the House of Representatives, which quickly passed the trade measure by 420 to 3, and the energy legislation by 413 to 9. President Joe Biden was expected to sign both bills into law.
The trade bill clears the way for Biden’s administration to raise tariffs on imports from Russia and Belarus. The energy measure puts into law Biden’s previous executive order banning imports of Russian oil, natural gas and coal.
“This package is about bringing every tool of economic pressure to bear on (Russian President) Vladimir Putin and his oligarch cronies. Putin’s Russia does not deserve to be a part of the economic order that has existed since the end of World War Two,” Senator Ron Wyden, chairman of the Senate Finance Committee, said in a statement.
The House passed both bills earlier this year, but they stalled in the Senate as Republicans and Democrats argued over when to vote on the energy measure and wording of a provision in the trade bill reauthorizing the Magnitsky Act, which allows sanctions over human rights violations.
U.S. law mandates that Congress must approve the change in Russia and Belarus’ trade status.
Under a compromise forged late on Wednesday senators agreed to consider both the trade measure and the energy bill. The House had to approve amendments to both measures because of technical changes made in the Senate.
Russia calls the assault on Ukraine a “special military operation.”
(Reporting by Patricia Zengerle; Editing by Chris Gallagher and Howard Goller)
Economic sanctions are restrictive measures imposed by countries to influence or punish other nations. They can include trade barriers, tariffs, and restrictions on financial transactions.
Permanent Normal Trade Relations (PNTR) is a trade status that allows a country to receive the same trade benefits as the most favored nation, promoting stable and predictable trade relations.
Banning oil imports is a significant economic sanction that aims to restrict a country's revenue from oil sales, impacting its economy and ability to fund activities, such as military operations.
The U.S. Congress plays a crucial role in trade agreements by approving changes in trade status, tariffs, and sanctions, ensuring that legislative measures align with national interests.
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