What Revoking Russia's 'Most Favored Nation' Status Means For MA

MASSACHUSETTS — The United States and its allies took steps Friday to further isolate and sanction Russia for its war on Ukraine, revoking "most favored nation status" and cutting the flow of luxury goods to Russia, some of them manufactured in Massachusetts.

Removing Russia as a "most favored nation" cuts the flow of normal trade routes, eventually leading to higher tariffs for the country.

Massachusetts exports about $145,288,877 yearly to Russia while importing $176,223,162 from them in return, according to a 2020 study by Global Edge. While Russia isn't a top ten trade partner for the Bay State, the sanctions will still bring a substantial impact as oil and mineral fuels remain a top imported good nationwide.

On Friday, Massachusetts-based coffee shop Dunkin' halted "all current development and investment in Russia," following its invasion of Ukraine, following other chains like McDonald's and Starbucks.

In 2019, Russia was The United States' 26th largest global trade partner, totaling $28 billion in goods trade and $6.9 billion in services, exports, and imports, according to the Office of the US Trade Representative.

President Joe Biden's executive order also stopped the import of cocktail party staples like caviar from the Black Sea and other fish and seafood, Russian vodka and other alcoholic beverages, diamonds, and other high-end goods.

Also, Biden said, the U.S. and its allies are continuing to add to the names of Russian oligarchs facing sanctions.

"The free world is coming together to confront Putin," Biden said from the Roosevelt Room of the White House.

Without being specific, Biden said that "Russia would pay a severe price if they used chemical weapons" against Ukraine.

The broad shift in trade policy comes as Biden faces pressure at home from a bipartisan coalition of lawmakers and from Ukrainian President Volodymyr Zelenskyy to end what are known as "permanent normal trade relations" with Russia.

Earlier this week, Biden banned Russian oil and gas products, saying the United States would not subsidize Russian President Vladimir Putin's war on Ukraine.

Biden announced the new sanctions as Russia widened its offensive in Ukraine, striking airfields in the west and a major industrial city in the east, while a huge armored column moved closer to the capital city of Kyiv.

The Associated Press contributed reporting.