President Biden Announces New Economic Sanctions Against Russia, Including Plans to Revoke Russia's MFN Status | Practical Law

President Biden Announces New Economic Sanctions Against Russia, Including Plans to Revoke Russia's MFN Status | Practical Law

On March 11, 2022, President Biden announced new economic sanctions against Russia, including plans to revoke Russia's Most-Favored Nation (MFN) import status, and issued an Executive Order banning certain US imports from and exports to Russia, authorizing future restrictions on investments in the Russian economy, and prohibiting US persons from supplying US dollar-denominated banknotes to the Russian government or any person located in Russia.

President Biden Announces New Economic Sanctions Against Russia, Including Plans to Revoke Russia's MFN Status

by Practical Law Commercial Transactions
Published on 11 Mar 2022 • USA (National/Federal)
On March 11, 2022, President Biden announced new economic sanctions against Russia, including plans to revoke Russia's Most-Favored Nation (MFN) import status, and issued an Executive Order banning certain US imports from and exports to Russia, authorizing future restrictions on investments in the Russian economy, and prohibiting US persons from supplying US dollar-denominated banknotes to the Russian government or any person located in Russia.
On March 11, 2022, the White House announced that the US will:
  • Work with Congress to revoke Russia’s most-favored nation (MFN) import status. This action will be taken in conjunction with similar actions by the G7 members. Revocation of MFN status would result in significantly higher tariffs on imports from Russia.
  • Work with G7 leaders to deny Russia financing at multilateral financial institutions, such as:
    • the International Monetary Fund; and
  • Impose full blocking sanctions on additional Russian elites and their families, including:
    • executives of banks the US has sanctioned;
    • Yuri Kovalchuk; and
    • Duma members who sponsored legislation to recognize the so-called "Donetsk People's Republic" and "Luhansk People's Republic" breakaway regions of Ukraine.
  • Ban US exports of luxury goods to Russia, such as:
    • high-end apparel, alcohol, and jewelry; and
    • luxury vehicles.
  • Ban US imports of goods from several signature sectors of Russia's economy, including seafood, spirits, and non-industrial diamonds.
  • Issue US Department of Treasury guidance to prevent sanctions evasion, including through virtual currency.
  • Authorize a ban on new investments by US persons in any designated sectors of Russia's economy.
On the same day, President Biden issued an Executive Order prohibiting:
  • US exports to Russia of luxury goods and any other items as may be determined by the Secretaries of Commerce, State, and Treasury.
  • US imports of the following Russian-origin goods:
    • fish, seafood, and preparations thereof;
    • alcoholic beverages; and
    • non-industrial diamonds.
  • US persons, wherever located, from:
    • making new investment in any sector of the Russian economy as may be determined by the Secretaries of Treasury and State;
    • supplying (directly or indirectly) US dollar-denominated banknotes to the Russian government or any person located in Russia; and
    • engaging in any approval, financing, facilitation, or guarantee of a transaction by a foreign person where the transaction would be prohibited under this Executive Order if performed by a US person or within the US.
For a tracker on the key Russia-related sanctions and export controls imposed by the US government in response to the 2022 Ukraine crisis, see Practice Note, US Sanctions and Export Controls on Russia in Response to Ukraine Crisis: Tracker. For more information about the Russian sanctions and related considerations, and Russia Sanctions and Related Considerations Toolkit.