US moves to ban Russian diamonds and vodka

US President Joe Biden has announced an import ban on Russian diamonds, seafood and vodka in a recent response to Russia’s war in Ukraine.

He also said Western allies plan to revoke Russia’s status as an equal trading partner, paving the way for further economic punishment.

The measures add to sanctions that have economically isolated Russia since the invasion.

Its currency has collapsed while global companies seek to exit the country.

Russian President Vladimir Putin has compared Western sanctions against banks and oligarchs to a declaration of war. Moscow has also threatened to nationalize manufacturing plants or factories where work has been suspended.

Mr Biden said the latest moves would be “another crushing blow to the Russian economy”.

Under international rules, designating a country as most favored nation nation offers reciprocal trade privileges such as lower tariffs and taxes levied at the border.

The US is coordinating the move to strip Russia of its status, along with the European Union and other advanced economies, including Canada and Japan, which Biden said would take similar steps.

In the US, Congress, which must act for the move to take effect, has already voted in favor of the move.

Additionally, Mr. Biden said Western allies plan to bar Russia from accessing funding from international organizations like the World Bank and the International Monetary Fund.

US ban on key Russian imports will hurt $1 billion worth of trade, White House said.

Mr Biden said the US would ban US exports of luxury goods to Russia and further sanction oligarchs and their families.