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Today’s big deal: The United States and its allies are stepping up their campaign to constrain the Russian economy. We will also look at who will benefit from higher oil prices and the fallout from the government funding agreement.
But first, Instagram is exit in Russia.
The United States and its allies will revoke Russia’s trade status
President BidenJoe BidenBiden expected to call for end of normal trade relations with Russia Senate avoids shutdown, spends 0.6 billion in Ukraine and GOP senators urge Biden to accelerate the transfer of air power and air defense systems to the MORE announced on Friday that the United States and other Group of Seven (G-7) countries would move Revoke ‘most favored nation’ trade status for Russia in new round of sanctions in response to Russian president Vladimir PoutineVladimir Vladimirovich PutinHogan, Maryland Legislative Leaders Agree to Halt Gas Tax for 30 Days Defense and National Security Overnight – Senators Grill Biden Officials on Ukraine Biden Warns Democrats It Will Be ‘Two sad years” if Republicans take control of Congress MOREthe invasion of Ukraine.
In remarks from the White House, Biden said the coordinated move would deal “another blow to the Russian economy.”
- The decision will open the door to the United States and other countries imposing higher tariffs on Russian products, further hampering the Russian economy.
“The free world is coming together to confront Putin. Our two parties here at home are leading the way,” Biden said.
“And with this bipartisan cooperation, I look forward to enacting the bill revoking the PNTR,” Biden said, referring to the permanent normal trade relations status.
Morgan Chalfant see you here.
LEADING THE DAY
Here’s who stands to gain from high gas prices
Not everyone is suffering from high gas prices which have increased further with Russia’s invasion of Ukraine and international sanctions imposed on Moscow.
Some players, including US oil producers, have everything to gain financially. And countries like Saudi Arabia have everything to gain both financially and politically.
- Companies that drill for oil: As oil prices rise, producers can get more money for their product. “Oil drillers and producers – it’s a grand slam for them right now,” said Patrick De Haan, head of oil analysis at GasBuddy, a gasoline price tracking website.
- Shale producers: Shale oil producers are uniquely positioned to take advantage of high gas prices given the relatively fast turnaround time in extracting this type of oil.
- Saudi Arabia and United Arab Emirates: Saudi Arabia and the United Arab Emirates could benefit from the surge in prices if they decide to put more oil on the market.
- Iran – if it can get across the finish line to a nuclear deal: If Iran could reach a nuclear deal with the United States and other countries, it might be able to put its barrels on the market.
Zack Budryk and Rachel Frazin of The Hill explain here.
CLOSE THE FAULTS
Senate finance chairman proposes removing ‘tax benefits’ for Russian oligarchs
A new proposal from the chairman of the Senate Finance Committee Ron WydenRonald (Ron) Lee WydenBiden should call for an end to normal trade relations with Russia. The IRS budget has been beefed up as the agency battles the backlog of tax returns. (D-Ore.) seeks to eliminate tax benefits for sanctioned Russians doing business in the United States, as well as to remove U.S. tax credits and deductions for taxes paid to Russia.
“Russian oligarchs and companies supporting [Russian President Vladimir] Putin should not get tax breaks in the United States,” Wyden said in a statement. “We should remove all special tax benefits for all sanctioned persons, as well as give [Treasury Secretary Janet] Yellen the power to identify other individuals, companies or governments supporting the invasion who should lose their tax benefits.
Tobias Burns of the Hill break it down here.
CAN’T MAKE CANNABIS
Congress nullifies DC voters, keeps illegal marijuana sales in district
A GOP-backed ban on weed sales in Washington, D.C., was preserved in a sprawling government funding bill passed by Congress on Thursday, despite opposition from advocates who say the provision trumps the will of the residents of the district years after they voted to legalize marijuana.
The Harris Rider, a provision banning the legalization of recreational marijuana sales in the nation’s capital named after its chief proponent, Rep. Andy HarrisAndrew (Andy) Peter HarrisPresident of Ukraine, US lawmakers huddle amid tensions with Russian Congress to undertake marijuana reform this spring (R-Md.), swept through the Senate Thursday night, a day after its run through the House, as part of a larger $1.5 trillion omnibus spending package to fund the government until the end. fiscal year 2022.
Congressional Democrats had pushed to delete the provision, opting not to include the jumper in government funding bills unveiled by owners of both houses last year. But negotiators say the jumper was reinstated in the credits after stiff opposition from Republicans.
“It was the Republicans who insisted. They were ready to shut down the government,” the senator said. Chris Van HollenChristopher (Chris) Van HollenUS-India relations strained under pressure from Russia Trump says he could have ousted ‘atrocious’ Susan Collins in 2020 (D-Md.), whose panel manages DC credits.
Congress has since blocked the district from adhering to the will of voters in every annual spending plan, even as the issue appears to have slipped through the cracks in spending negotiations, with a number of members saying that week that they weren’t following the runner’s status or unaware of its existence.
Karl and Aris get details here.
Stay ahead of the news cycle with The New Evening Report from The Hillfeaturing the main news of the day and a preview of tomorrow.
Virtual Event Invitation—The Future of Education—Thursday, March 17 at 1:00 p.m. ET/10:00 a.m. PT
After two years of virtual and blended learning, many students are still catching up. The federal government has provided billions of dollars in relief funds to school districts across the country. How do state officials use these funds and how do you address equity issues? Join us at The Hill’s annual Futures of Education Summit for headlining conversations with Education Secretary Miguel CardonaMiguel CardonaOn the Money — Prices Soar: Annual Inflation Hits 40-Year High Hillicon Valley — Featured by Nokia — Groups Warn Russians Internet Access 100,000 Student Borrowers Eligible for Cancellation of debt: DOE MOREsen. Bill CassidyBill CassidyOn Money – Prices Soar: Annual Inflation Hits 40-Year High Hillicon Valley – Featured By Nokia – Groups Warn About Russians’ Internet Access GOP Senator Presents Proposal For “Energy Operation Warp Speed” MORE (R-La.), Rep. Jahana HayesJahana HayesOn Money — Prices Soar: Annual Inflation Hits 40-Year High Hillicon Valley — Featured By Nokia — Groups Warn Russians’ Internet Access Over a Quarter of Congress Had COVID-19 MORE (D-Conn.) and Governors. Jared PolisJared Schutz PolisOn The Money — Prices Soar: Annual Inflation Hits 40-Year High Hillicon Valley — Presented By Nokia — Groups Warn Russians’ Internet Access Democratic Governors Call For Suspension Of gas tax PLUS (D-Colo.) and Chris SununuChris SununuOn Money — Prices Soar: Annual Inflation Hits 40-Year High Hillicon Valley — Featured By Nokia — Groups Warn Russians’ Internet Access antenna in the fall for his candidacy for re-election MORE (RN.H.). Book your place here.
Good to know
Government funding bill sent to President Biden late Thursday night raise funds modestly for the Department of Homeland Security while seeking to impose limits on the agencies that manage US immigration policy.
The roughly $182 billion bill does not cancel $2 billion in funding for the border wall — a messaging victory for Republicans even though the Biden administration has refused to build the wall. It’s a detail that has irked progressives, along with the legislative funding of significant detention capacity within US Immigration and Customs Enforcement.
Here’s what else we’ve got our eyes on:
- House Speaker Nancy Pelosi (D-California) said friday that legislation to revoke Russia’s “most favored nation” trading status has already been drafted and the House expects to vote on it next week.
- The Hill has compiled a list of countries that imports the most oil of Russia, led by China.
- Deutsche Bank said it is liquidation of operations in Russia following criticism of the bank’s previous stance to stay in the country.
IN SERVICE NEXT WEEK
- The Senate Finance Committee hold a hearing “The Promise and Challenge of Strategic Business Engagement in the Indo-Pacific Region” at 10 a.m.
- The Senate Committee on Banking, Housing and Urban Affairs hold a hearing “Advancing Public Transportation Under Bipartisan Infrastructure Law” at 2:30 p.m.
- The Special Senate Committee on Aging hold a hearing “Unbanked and Credit Invisible: Building Financial Inclusion for America’s Underserved Populations” at 9:30 a.m.
- House Science, Space and Technology Subcommittee on Research and Technology hold a hearing “Setting the Standards: Strengthening U.S. Leadership in Technical Standards” at 10:00 a.m.
- House Ways and Means Oversight Subcommittee holds a monitoring hearing from the IRS, with testimony from Commissioner Charles Rettig at 10:00 a.m.
- The House Senate Committee on Banking, Housing, and Urban Affairs hold a hearing “Understanding the Role of Digital Assets in Illicit Finance” at 10:00 a.m.
- The Senate Finance Committee hold a hearing “Examining Charitable Giving and Trends in the Nonprofit Sector” at 10:00 a.m.
That’s all for today. Thanks for reading and check out The Hill’s Finance page for the latest news and coverage. See you Monday.