UPDATE 2 - US to revoke normal trade ties with Russia: Biden

ADDS MORE REMARKS FROM BIDEN; REVISES HEADLINE, DECK, LEDE; ADDS WHITE HOUSE STATEMENT; OTHER CHANGES

By Ovunc Kutlu

ANKARA (AA) - Branding Russian President Vladimir Putin an "aggressor" in Ukraine, President Joe Biden on Friday announced that the US will revoke normal trade relations with Russia.

The move will ramp up economic pressure on Putin and further isolate Moscow from the global stage, Biden told a press briefing at the White House.

"Later today … with other NATO allies and G7 members, Canada, France, Germany, Italy, Japan, the UK, and the EU, we are going to jointly announce several new steps to squeeze Putin," he told.

"First, each of our nations are going to take steps to deny most favored nation status to Russia," he said, meaning denying Russia any agreement to trade with the US with low tariffs, few barriers to trade, and with highest imports allowed.

In the US, this is called permanent normal trade relations (PNTR), Biden noted.

"Revoking PNTR for Russia is going to make it harder for Russia to do business with the US, and doing it in unison with other nations (that) make up half of the global economy will be another crushing blow to the Russian economy (which is) already suffering very badly from our sanctions," he explained.

Biden stressed that unity among the US' allies is critically important, adding: "The free world is coming together to confront Putin."

The president said an additional step to ban imports of goods of several sectors of the Russian economy, including seafood, vodka and diamonds.

"We are going to continue squeezing Putin. The G7 will seek to deny Russia the ability to borrow from leading institutions, such as the International Monetary Fund and the World Bank," he said.

- Pressure on Russian billionaires

"Putin is an aggressor. He is the aggressor. And, Putin must pay the price," Biden said, stressing that the Russian leader cannot pursue a war that threatens the foundation of international peace and stability.

"The G7 is also stepping up pressure on corrupt Russian billionaires. We are adding new names to the list of oligarchs and their families that we are targeting," he said.

"They support Putin, they steal from the Russian people. And, they seek to hide their money in our countries ... They must share the pain of these sanctions."

Biden said the US is also banning exports of luxury goods to Russia.

"Totality of our sanctions and exports controls are crushing Russian economy. The (Russian) ruble has lost more than half of its value. It takes about 200 rubles to equal one dollar these days. Moscow stock exchange has been for two weeks, because they know the moment it opens it will probably collapse," he said.

Biden noted that credit rating agencies have been downgrading Russia to "junk" status.

- ‘We must strive to prevent’ World War III

Biden also added that the US set aside $1 billion in security assistance to Ukraine last year which includes anti-armor and anti-air capabilities, in addition to humanitarian supplies such as food, water, and medicines.

"We will make sure Ukraine has weapons to defend against an invading Russian force. We will send money and food and aid to save the Ukrainian people," he said

"We will defend every single inch of NATO territory with the full might and the united and galvanized NATO. We will not fight a war against Russia in Ukraine. Direct confrontation between NATO and Russia is World War III. Something we must strive to prevent," he added.

The White House said in a statement that each member of the G7 – Canada, France, Germany, Italy, Japan and the UK – as well as the EU will implement actions against Russia consistent with their national processes.

In addition to revoking Russia’s most-favored nation status in trade, other actions include denying Russia's borrowing privileges at multilateral financial institutions and full blocking sanctions on additional Russian elites and their family members.

While Biden spoke about banning exports of luxury goods to Russia and the US' import of goods from several sectors of Russian economy, the White House added that the US Treasury Department will thwart sanctions evasion, including through virtual currencies.

"Treasury is closely monitoring any efforts to circumvent or violate Russia-related sanctions, including through the use of virtual currency, and is committed to using its broad enforcement authorities to act against violations and to promote compliance," it said in a statement.

The White House added that another action will ban new investment in any Russian sector.

"Biden's executive order will establish the legal authority for future investment restrictions in any sector of the Russian economy, as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State, by a United States person," it said.