A full-scale, no-holds-barred economic war pitting America and its European allies against Russia has begun. US President Joe Biden announced on Friday that Washington and its allies are ending normal trade relations with Russia, to the extent of even banning vodka imports, while Moscow signaled it would seize assets of western companies that have ended operations in Russia amid imminent debt default on its part.
In a White House announcement, Biden said the US and its partners would deliver "another crushing blow to the Russian economy" and "squeeze Putin" while rolling out a raft of measures to "further isolate Russia from the global financial system." They include revoking Russia’s Most-Favored Nation Status; denying borrowing privileges at Multilateral Financial Institutions; freezing assets and blocking travel of Russian elites; banning the export of luxury goods to Russia; and banning import from signature sectors of Russia’s economy – including seafood, spirits/vodka, and diamonds, which would deny Russia more than $1 billion in revenues.