In a message to the Congress, Obama said it is "appropriate" to withdraw Russia's designation as a beneficiary developing country under the GSP programme because Russia is "sufficiently advanced" in economic development and improved in trade competitiveness that continued preferential treatment under the GSP is "not warranted", Xinhua reported.
"Once Russia's eligibility is withdrawn, which would be effected via a presidential proclamation, US imports of GSP-eligible goods from Russia will be subject to normal, non- preferential rates of duty," the White House noted.
The decision came as the US has already imposed sanctions on dozens of Russian businessmen and politicians over Russia's actions on Ukraine. Obama said on Friday that the US and Germany are prepared to impose broader sanctions on Russia if it continues to destabilise Ukraine.
The GSP is a programme, designed to promote economic growth in the developing world by providing preferential duty-free entry of up to 5,000 products when imported from designated beneficiary countries and territories, according to the office of the US Trade Representative.
Legal authorisation of the GSP programme expired in July 2013, and it is now waiting for congressional re-authorisation.
In a separate statement, US Trade Representative (USTR) Michael Froman said Russia has advanced "beyond the level of economic development and competitiveness for GSP eligibility".
According to USTR data, the US imported $296 million in goods from Russia under the GSP programme from January to July 2013, and Russia is among the top 10 beneficiary developing countries of the GSP programme.