G7 wants to end normal trade relations with Russia

The G7 countries announced on Friday that they would end normal trade relations with Russia. This is part of a series of new measures aimed at economically punishing Moscow for its invasion of Ukraine.

The joint move, first announced by US President Joe Biden, involves removing Russia's "most-favoured-nation status," which allows the country to trade with many Western countries on preferential terms under World Trade Organization rules. This move will result in higher tariffs on many Russian exports.

The G7 also agreed on other measures, including a ban on Russia receiving funding from international institutions such as the IMF and World Bank.

"The democracies are rising up at this moment and rallying the world to the side of peace and security. We are showing our strength and we will not hesitate," Biden said at the White House.

While sanctions vary from country to country, the US and EU said they would ban exports of luxury goods to Russia and impose further restrictions on members of Russia's elite. The US will also create the legal framework for investment bans in all areas of the Russian economy beyond the energy sector.

The announcement came after the US this week banned Russian energy imports into America - targeting the largest source of trade between the two countries and a key source of hard currency for Moscow.

The US will now ban key Russian imports including seafood, liquor and diamonds, while Brussels announced an import freeze on key iron and steel products.

"This will hit a key sector of the Russian system, depriving the country of billions in export earnings and ensuring our citizens don't subsidize Putin's war," said Ursula von der Leyen, President of the European Commission.

The 27 EU member states are expected to agree to the move next week.

The G7 also said they would ensure cryptocurrencies could not be used by Russians to evade sanctions and send money out of the country.

The White House has been under pressure from Congress for days to strip Russia of permanent normal trading partner status.

Friday's move was the latest in a series of sweeping sanctions against Moscow, including members of the country's business elite, the inner circle of officials close to President Vladimir Putin, the central bank and other key financial institutions.

Canada, a member of the G7, took the first step last week and also banned imports of Russian oil.