Since Russia invaded Ukraine, several companies have been cutting business ties with Russia in an effort to protest and leave the government solitary. Companies that have strived over decades to build business ties with Russia took only several days to re-evaluate their decisions after the initial invasion. Many western companies have begun to decrease investments, close stores, and halt sales. The Biden administration agreed to join Europe and other allies in stripping Russia from normal trade relations. 

Ending business in Russia will allow the eight other countries involved in the boycott to impose higher tariffs on Russian goods and services. Biden also concluded imports on lucrative goods such as vodka, diamonds, and seafood which is projected to cost Russia more than $1 billion in export revenues. The United States restricted exports of luxury items like alcohol, vehicles, jewelry, and clothing. These measures will result in an increase of 29 percent in tariffs on Russian goods. Canada announced that it would withdraw the most favored nation tariffs with Russia and their closest ally, Belarus. 

Biden stated on Friday, March 11th, “The moves will be another crushing blow on the Russian economy.” The Russian currency, the ruble, has lost half of its value over the past month. Since the war began, Russia’s stock market has been closed. House Democrats proposed to begin the process of removing Russia from the World Trade Organization. A bill passed by the House this week will penalize Russia and trade agreements. If this bill is passed, the measure would add to the several harsh sanctions already announced by the U.S. and its allies. Due to the collapse of the Russian economy,  the induction of this bill will allow the U.S. to impose higher tariffs on Russian goods, and further distance them from the WTO. 

The Bank for International Settlements stated it was no longer conducting transactions with Russia. In addition, the Treasury Department put three economic sanctions on three family members of Putin’s spokesmen, along with twelve members of the Russian Duma. In an attempt to rebel, Russia has announced it would place its own restrictions on exports: such as fuel and energy products.

To conclude, business regarding Russia and many involved countries has resulted in the beginning of an economic downfall for the country. As long as Russia continues its invasion of Ukraine, substantially more countries and companies will continue to make the decision to end business relations.