Biden announces US will move to revoke ‘most favored nation’ trade status for Russia

(CNN) -- President Joe Biden announced Friday that the US, along with the G7 and European Union, will call for revoking "most favored nation" status for Russia, referred to as permanent normal trade relations in the US.

Biden said the move and said it would hold Russian President Vladimir Putin "even more accountable for his aggression against Ukraine."

"Each of our nations will take steps to deny 'most favored nation' status to Russia. A most favored nation status designation means two countries have agreed to trade with each other under the best possible terms -- low tariffs, few barriers to trade and the highest possible imports allowed," Biden said.

"In the United States, we call this permanent normal trade relations, PNTR, but it's the same thing. Revoking PNTR for Russia is going to make it harder for Russia to do business with the United States and doing it in unison with other nations that make up half of the global economy will be another crushing blow to the Russian economy that's already suffering very badly from our sanctions."

The move requires an act of Congress.

The move was one of multiple new actions on trade expected to be made by the Biden administration toward Russia. The United States will also ban imports of alcohol and seafood, such as vodka and caviar, from Russia, a White House official told CNN.

Each country is expected to implement this measure based on its own national processes. Sources familiar with the move made note of congressional efforts to revoke Russia's permanent normal trade relations. Congress is expected to introduce legislation following Biden's announcement.

CNN reported Thursday that bipartisan talks in the Senate had been taking shape to take more aggressive action on Russia's trade status -- after the White House effectively watered down the House-passed bill banning importing Russian oil, natural gas and coal into the US.

The earlier version of the legislation had included a provision that would suspend permanent normal trade relations for Russia and Belarus. But the White House expressed concerns over that part of the bill, and ultimately it was excised. The bill banning Russian energy imports that passed the House Wednesday night instead simply called for a review of Russia's status in the World Trade Organization.

Senate Finance Chairman Ron Wyden, a Democrat of Oregon, told CNN that he was engaging in talks with the top tax writers in Congress and the Biden administration about the matter, as pressure grew to include tougher language in the House bill when the Senate takes it up -- as soon as next week.

"I believe the Russians -- the inhumane behavior of Russia does not justify it to get the fruits of the international community," Wyden told CNN.

Sen. Mike Crapo, an Idaho Republican and the ranking Republican on the Finance Committee, said he probably wouldn't support the House bill without stronger language on its trade status -- and made clear there would be an effort to amend it.

"The question is PNTR, which is absent. And then they had some other stuff on the WTO in there, which is kind of hollow if we don't do PNTR," Crapo said earlier in the day. "So, I probably would not support it because it doesn't have the key things that you need for a proper trade response."

This story has been updated with additional details Thursday.

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