Russia to lose 'most favored nation' trade status

STORY: As fighting rages in Ukraine, western countries look set to ramp up action against Russia’s economy.

The U.S. and EU, together with G7 countries, plan to strip Russia of its “most favored nation” status.

That's according to multiple Reuters sources.

The EU said last week that it was looking at what it could do within the context of the World Trade Organization.

Though it sounds technical, stripping Russia of the status would open the way to stiff new tariffs and quotas on its exports.

In 2020, the EU imported over $105 billion of goods from the country.

That was mostly oil and gas, but also included large quantities of farm produce, raw materials, chemicals, iron and steel.

In the U.S., removing Russia’s “Permanent Normal Trade Relations” status would require an act of Congress.

However, officials say lawmakers on both sides of the aisle have already indicated their support for such a move.

WTO rules normally require all countries to be treated equally.

But it looks like Russia is about to lose that privilege.