Revocation of Russia’s Most-Favored-Nation Trade Status: What Companies Need to Know

Revocation of Russia’s Most-Favored-Nation Trade Status: What Companies Need to Know

March 18, 2022, Covington Alert

On March 11, 2022, President Biden announced that the United States, acting in coordination with the European Union (“EU”) and leaders of major economies belonging to the Group of Seven (“G7”), would begin taking steps to revoke most-favored-nation (or “MFN”) trade status for Russia. MFN trade status—known as Permanent Normal Trade Relations (“PNTR”) status in the United States—is a term used to describe the nondiscriminatory treatment granted among most of the world’s trading partners. Days after the President’s address, on March 16, the House passed H.R. 7108 to formally revoke PNTR for both Russia and Belarus. The bill now moves to the Senate, where timing for its consideration is uncertain.