BRUSSELS, (Reuters) – The United States of America, Canada, Britain, Canada, Japan and the European Union were expected to act together on Friday in order to revoke Russia’s status as “most preferred nation” (MFN), following its invasion, sources familiar with the matter told Reuters.

What is MFN status? And what can it be removed from?

MOST FAVOURED NATION STATUS

Each of the 164 World Trade Organization member countries agrees to be fair with each other in order to benefit from their respective lowest tariffs, highest imported quotas and most trade barriers. This principle is also known as “most favoured nation” (MFN) treatment.

There may be exceptions such as agreements between members that allow for bilateral trade or special access by members to markets in the developing world.

WTO members have the power to impose any trade measures that they like on countries other than those in the WTO (e.g., Iran, North Korea or Syria) without violating global trading regulations.

RELEASE OF THE MFN STATUS

It is unclear if members have to notify the WTO in order to suspend MFN treatment.

After a suicide attack perpetrated by an Islamist group based in Pakistan, 40 police officers were killed and India removed Pakistan from its MFN status. Pakistan has never granted India MFN status.

WHAT IS LOSING THE MFN STATUS MEANS?

Although revoking Russia’s MFN status is a signal that America and its Western allies don’t consider Russia an economic partner, it does not change trade conditions.

Officially, it allows Western allies to increase Russian import tariffs and impose quotas for Russian goods. It is possible that they could overlook Russian intellectual property rights.

Before the MFN status was removed, the United States already declared a ban to imports from Russia of oil and gas.

Canada announced last week that it would be withdrawing MFN status to Russia and Belarus. This allowed Russian troops access to Ukraine’s territory. It also imposed a general tariff of 35% on almost all imports.

Canada stated that Russia and Belarus would join North Korea to be the sole countries where imports will be subject to the general duty.

About 70% of imports from Belarus, a non-WTO member, have been banned by the European Union. The European Union is still waiting on formal adoption of MFN Suspension before taking any similar action against Russia.

Russia is a source of mineral fuels as well precious and rare metals, stones, iron and Steel, fertilizers, inorganic chemicals, and other imports.

In addition to unimaginable sanctions, export controls, and banking restrictions, the MFN decision is meant to pressure Russian President Vladimir Putin into ending Europe’s largest civil war since World War Two.