U.S., EU, G7 plan to revoke Russia’s most favored trade status as White House warns Putin may seize companies’ assets

President Biden will announce Friday that the U.S., European Union and G7 countries will move to revoke Russia’s “most favored nation” trade status over its invasion of Ukraine, a source familiar with the matter told CBS News.

Mr. Biden’s move comes as lawmakers on both sides of the aisle have called on him to revoke what is formally known as “permanent normal trade relations” with Russia. It would allow the U.S. and allies to impose tariffs on Russian imports.

Meanwhile, White House press secretary Jen Psaki tweeted Thursday night that the Biden administration is receiving reports that “Russia may be considering seizing the assets of U.S. and international companies that have announced plans to suspend operations in Russia or to withdraw from the Russian market.”

She said the possible Russian retaliation would “ultimately result in even more economic pain for Russia” and “compound the clear message to the global business community that Russia is not a safe place to invest and do business.”

Within the past few days, companies such as Starbucks, McDonald’s, Hilton Worldwide Hotels, Coca-Cola and PepsiCo., have announced changes to their operations in Russia. Psaki reiterated Thursday night that each company had made its decision independent of the U.S. government.

“We stand with American companies who are making tough decisions regarding the future of their Russian operations,” Psaki wrote.

On Capitol Hill, the Senate approved a $1.5 trillion omnibus spending bill that includes a $13.6 billion emergency package of military and humanitarian aid for besieged Ukraine and its European allies. The vote was 68-31. 

“We promised the Ukrainian people they would not go at it alone in their fight against Putin,” Senate Majority Leader Chuck Schumer said just before the vote. “And once we pass this funding in a short while, we will keep that promise.”

The bill now heads to Mr. Biden’s desk, and he is all but certain to sign it.

On the ground in Ukraine, a convoy of Russian forces outside of Kyiv appeared to dissolve, according to satellite images obtained by the AP. Ukrainian forces, as well as reported food and fuel shortages, slowed the convoy’s advance. 

However, Russian forces continue to launch airstrikes on swaths of the country, including coastal towns.

Leaders from across the world are expected to convene on Friday morning after Russia hastily called a U.N. Security Council meeting to discuss in open debate what it called “the military biological activities of the US on the territory of Ukraine” — leading the Biden administration to immediately denounce it as a “false flag effort.”

Pamela Falk contributed reporting.