US and UK Ban Russian Metal Imports to Disrupt Moscow’s Revenue Stream
Daphne Psaledakis, Polina Devitt and Paul Sandle report on the recent ban imposed by Washington and London on Russian metal imports.
Washington and London have taken a significant step by prohibiting metal-trading exchanges from accepting new aluminum and nickel produced by Russia, aiming to disrupt Moscow’s export revenue amidst the ongoing Ukraine invasion.
The ban targets Russian metals giants Rusal and Nornickel, impacting their ability to trade with global exchanges. The US Treasury Department highlighted the importance of these restrictions in limiting Russia’s resources to fund its military actions.
Despite the lack of immediate response from Russian producers and officials, the US and UK are committed to minimizing market disruptions and stabilizing the situation swiftly.
The London Metal Exchange (LME) and Chicago Mercantile Exchange will no longer accept new Russian production of key metals, aligning with the coordinated efforts of the US and UK authorities.
Both countries have ensured that existing stocks of Russian metal on global exchanges will still be tradable to mitigate any adverse effects on market stability.
While bilateral contracts remain unaffected, trading Russian metals off the exchanges is expected to occur at a discount, reducing Moscow’s revenue per trade.
London Metal Exchange data revealed a significant share of Russian-origin metal in inventories, prompting concerns among industry players and consumers following Russia’s invasion of Ukraine.
The recent ban on Russian metal imports is part of a series of sanctions imposed on Russia by the US, UK, and allies in response to the Ukraine invasion.
US economic measures against Russia, including tariffs on metals, have effectively reduced imports to zero, indicating the impact of these sanctions on trade relations.
Britain’s decision to extend its ban on base metal imports from Russia demonstrates a unified approach with international partners to address geopolitical tensions.
