On May 7, 2014, President Obama submitted a letter to congress announcing his intention to remove Russia as a beneficiary developing country under the Generalized System of Preferences Beneficiary (GSP). Under section 501 of the 1974 Act, the president shall consider the economic development of a beneficiary country through the removal of duties, whereas section 502 (c) considers factors such as the country's level of economic development, the nation's per capita gross national product, and the country’s living standards.

In his letter, the president explains that, “Having considered the factors set forth in sections 501 and 502(c) of the 1974 Act, I have determined that it is appropriate to withdraw Russia's designation as a beneficiary developing country under the GSP program because Russia is sufficiently advanced in economic development and improved in trade competitiveness that continued preferential treatment under the GSP is not warranted. I intend to issue a proclamation withdrawing Russia's designation consistent with section 502(f)(2) of the 1974 Act. “

President Obama did not state that the removal is a punitive measure linked to Russia’s conflict with Ukraine.

The letter can be accessed here