Washington and London Ban Russian Metal Imports: Disrupting Revenue Streams
The Latest Restrictions on Russian Metal
Washington and London have taken a decisive step by prohibiting metal-trading exchanges from accepting new aluminum and nickel produced by Russia. Furthermore, they have banned the import of these metals into the U.S. and UK.
Targeting Russian Export Revenue
This action is specifically aimed at disrupting Russian export revenue from these metals. The move comes as a response to Moscow’s invasion of Ukraine, resulting in immense destruction and loss of life.
Impact on Russian Metal Producers
Major Russian metal producers like Rusal and Nornickel have not responded to requests for comment on these developments. The U.S. Treasury Department has stated that the measures will prevent metal exchanges from accepting new Russian production of aluminum, copper, and nickel.
Ensuring Market Stability
Both the UK and U.S. measures will exempt existing stocks of Russian metal on global exchanges to facilitate trading and minimize market disruptions. Notably, most aluminum stocks in London Metal Exchange-registered warehouses are of Russian origin.
Concerns from Industry Players
The high share of Russian-origin metal in LME inventories has raised concerns among producers and consumers. The share of Russian-origin copper and nickel stocks has also increased recently, reflecting the impact of geopolitical events on the metal market.
