Congress passes legislation to rescind Russia's 'most favored nation' trade standing, awaits Biden's signature.

• Russia's "most favored nation" trade status was revoked by Congress, resulting in an economic downgrade that permits higher tariffs on Moscow due to its invasion of Ukraine.
• The bill, which is a formal step to sever normal economic ties with Russia, awaits President Joe Biden's signature into law.
• Congress passed legislation to enforce Biden's pledge to prohibit the import of Russian oil and other petroleum products.
• On Thursday, the European Union is expected to approve an embargo on Russian coal, but the timing of the implementation period is still being discussed.

On Thursday, Congress voted to remove Russia's "most favored nation" trade status, which could result in new, damaging tariffs on Moscow due to its invasion of Ukraine.

The bill was passed by the House in a 420-3 vote and sent to President Biden's desk. Earlier Thursday, the Senate approved the same version of the legislation in a unanimous 100-0 vote.

The three congresspeople who voted against removing Russia's preferred status were Reps. Marjorie Taylor Greene, Thomas Massie, and Matt Gaetz, all Republican lawmakers who closely support former President Donald Trump.

HR 7108 is a bill that aims to cut off normal trade relations with Russia and Belarus, two of the Kremlin's closest allies, and impose import controls on essential goods such as platinum, chemicals, iron, and steel.

Last month, the Biden administration took steps to sever trade ties with Russia by prohibiting the import of oil, vodka, diamonds, and seafood.

No leader who commits war crimes should be granted free trade status with the United States," Senate Majority Leader Chuck Schumer, D-N.Y., stated on the Senate floor. "No individual who behaves like a tyrant deserves to be treated as an equal among the leaders of the free world. He is a threat and a disgrace who has secured his place in history as a pariah.

The World Trade Organization grants equal trade treatment to all members and immunity from severe import penalties with the most favored nation status.

According to Clete Willems, a partner at law firm Akin Gump and a former U.S. attorney at the WTO, there are two categories under U.S. law: one with lower tariffs and the other with higher tariffs.

The average tariff rate for all other WTO members is approximately 2.8%, while the average tariff rate for non-MFN is around 20%. This legislation will alter the tariff treatment of all products affected.

The Senate passed a bill 100-0 that codifies Biden's promise to ban the import of Russian energy products into the US, which also passed the House 413-9.

The Group of Seven and many other nations have pledged to cooperate with the U.S. and its allies in ending economic ties with Russia following investigations into war crimes committed by Russian forces in Ukraine.

The Biden administration and its partners have collaborated to restrict the Kremlin's influence in global financial institutions, including the International Monetary Fund and the World Bank. Additionally, the Treasury Department and the Federal Reserve have taken coordinated action to limit Russia's access to foreign currencies and impose sanctions on individuals and families associated with Russian President Vladimir Putin.

The Treasury Secretary, Janet Yellen, states that the economic sanctions are aimed at weakening the ruble, damaging the Russian stock market, and gradually crippling Moscow's economy. The US aims to undermine Putin's power in the military and among the country's wealthy oligarchs through these actions.

Attorney Willems stated that the most favored nation bill should be considered "additive" and damaging in the context of an international, coordinated effort.

The president will have the authority to raise tariffs on other select products, which will have a real impact on the Russian economy. The key imports we get from them beyond oil include platinum, chemicals, iron and steel, plywood, some kinds of engines, and titanium.

The U.S. and its allies have collaborated to hinder the Russian economy.

On Thursday, the European Union is expected to approve an embargo on Russian coal. However, the timing of the phase-in period is still being debated, particularly between Poland and Germany, as of Thursday morning ET.

Moscow's traded goods in 2019 were mostly bought by the EU, with its members accounting for approximately 40% of Russia's export market.

The global community is expressing outrage over Russia's unprovoked war in Ukraine, which has led to the imposition of new economic sanctions.

On Thursday, Ukrainian Foreign Minister Dmytro Kuleba requested "weapons, weapons, weapons" from NATO foreign ministers and G-7 leaders.

On Wednesday evening, the U.S. House passed legislation accusing the Russian military, under Putin's leadership, of committing numerous wrongdoings, including targeting civilians and non-military structures such as schools and hospitals.