Ukraine conflict: Russia to have "most favoured nation" status revoked: What does this mean and will it impact Putin?
But what does "most favoured nation" trade status mean and what impact could it have on Russia?
What is ‘most favoured nation status’?
‘Most favoured nation’ status means that a country enjoys the best trading conditions and opportunities with partners. That means it receives the lowest tariffs, the fewest trade barriers, and the highest import quotas - with the majority of countries in the World Trade Organisation (WTO) enjoying most favoured status with each member.
Most favoured nation status countries enjoy lower costs of exports, due to a lower trade barrier, and access to a larger market.
What impact will the removal of most favoured nation status have on Russia and Putin?
Stripping most favoured nation status, from Russia will allow the US and G7 allies to impose tariffs on Russian imports, increasing the isolation of the Russian economy in retaliation for the invasion.
As a result, Russian exports will suffer and the country will have less access to global markets.
The move will effectively revoke what is formally known as "permanent normal trade relations" with Russia.
Ukrainian President Volodymyr Zelensky pressed the US and allies to take action against Russia in remarks to Congress last weekend, with the move coming amid bipartisan pressure on the US president.
The latest move comes days after the Biden administration moved to ban imports of Russian oil and gas products.
Western governments have warned Vladimir Putin would face a “dramatic increased response” from the West if he crosses the “line” of using chemical weapons in Ukraine.
The UN Security Council will meet on Friday at Russia's request to discuss what Moscow claims are "the military biological activities of the US on the territory of Ukraine", with the Russians being accused of a ‘false flag operation’
Canada was the first major US ally to remove most favoured nation status for Russia last week.