America, Britain and other allies moved on Friday to tighten the economic vice on Russia in response to Vladimir Putin’s “barbaric” invasion of Ukraine.
The G7 group of wealthy nations agreed fresh steps to hit Russian exports with tariffs after imposing a wave of unprecedented sanctions.
The action was being taken by the UK, US, France, Germany, Italy, Canada and Japan.
The move to revoke Russia’s “most-favoured nation” status on key products, would deny it from trading goods on preferential terms with other western countries, in accordance with rules set by the World Trade Organisation.
This will result in higher tariffs on many Russian exports, further crippling its economy.
Further measures agreed on include stopping Russia from obtaining any financing from multilateral institutions including the International Monetary Fund, the World Bank and the European Bank for Reconstruction and Development.
The wealthy nations in the West said they were taking this action because “Russia cannot grossly violate international law and expect to benefit from being part of the international economic order”.
G7 countries also said they would continue with their campaign of pressure on Russian elites and oligarchs with close links to Mr Putin, by limiting their access to the global financial system.
In the joint statement, G7 members said Russia’s invasion of Ukraine “is causing enormous suffering and a tragic loss of life, including through the increasingly indiscriminate bombing and shelling of civilians.
“We are united in our determination to hold President Putin and his regime accountable.
“We remain resolved to isolate Russia further from our economies and the international financial system.”
The group of leading western nations added they were ready to impose further tough sanctions if necessary.
They stressed: “We will continue to evaluate the impacts of our measures, including on third countries, and are prepared to take further measures to hold President Putin and his regime accountable for his attack on Ukraine”.
No 10 said the move would significantly reduce the ability of Russian businesses to export.
Downing Street also emphasised that the UK will also work toward banning exports of luxury goods to Russia, cutting off access to high-end goods from some of the world’s biggest producers of luxury products.
Earlier on Friday, the Biden administration announced it was banning imports of Russian alcohol, seafood and diamonds - some of the country’s most valuable commodities.
Mr Putin has previously said Western sanctions on banks and oligarchs are akin to a “declaration of war”.
He has also insisted he can endure sanctions, and on Friday evening announced that Russia had agreed on joint steps for mutual support with Belarus, including on energy prices, in the face of tough measures imposed by the West.
It comes amid fears that Belarus could enter the conflict.
Kyiv’s Centre for Strategic Communications said it could not rule out the possibility that Belarusian forces could cross the border into Ukraine, following a meeting between Putin and Belarusian leader Alexander Lukashenko.
