Britain bans luxury exports to Russia Business

Britain has banned the export of luxury goods to Russia as part of efforts to increase the economic pain of Vladimir Putin and his supporters.

Rishi Sunak, the chancellor, said the aim of the UK and G7 measures is “to further insulate the Russian economy from global trade, ensuring that it does not benefit from the international system based on rules that she does not respect”.

“These tariffs build on the UK’s existing work to starve Russia’s access to international finance, sanction Putin’s cronies and exert maximum economic pressure on his regime,” he added.

The list of items that can no longer be exported to Russia has yet to be released, but is expected to include high-end fashion items, cars and artwork.

Russian vodka, ships, furs and grain will all face steep new taxes of 35% if imported into the UK, the Treasury and the Department for International Trade announced on Tuesday.

Other imports affected by the additional tariffs include industrial metals, with steel, iron, aluminum, copper, lead and silver on the list.

Machinery, lumber, tires and cement are also covered, affecting construction and manufacturing supply chains. The value of these imports is £900 million.

Consumers could also notice the impact, as alcohol, including vodka, will be taxed more heavily, as will white fish, glassware, oilseeds and grains.

Food supplies could also be affected by an additional tariff on fertilizers from Russia.

Anne-Marie Trevelyan, International Trade Secretary, said: “The UK stands with our international partners in our determination to punish Putin for his barbaric actions in Ukraine, and we will continue our work to deprive his regime of funds. which allow him to execute them.

This decision is possible because Russia will no longer benefit from the “most favored nation” rules generally applied at the World Trade Organization which ensure that all trading partners enjoy the same basic tariffs when trading with others. members. The suspension of this rule allows the application of punitive tariffs.

It came as economists at Scope Ratings said Russia’s GDP is set to fall more than 10% this year in a recession overtaking Covid or the financial crisis.