The US and UK Treasury Ministries announced new sanctions against trade in Russian metals. The US — following last year's decision by the UK — has banned imports of Russian aluminum, copper and nickel. We are talking about metals produced after today, April 13th.
Trading these metals, except for existing reserves, was banned on the London (LME) and the Chicago Metal Exchange (CME). These are the largest metal exchanges in the world, the prices of which are used by all other sellers.
“Our new restrictions on key metals will continue to reduce the income Russia can spend on a brutal war against Ukraine. With this decision, we are reducing Russia’s income and at the same time protecting our associates from unwanted side effects,” said US Treasury Secretary Jennette Yellen.
On the LME, as Reuters notes, the share of aluminum from Russia in total volumes in March 2024 reached 91%. In the case of copper, the figure was 62%, and in the case of nickel — 36%. Interlocutors in the US and British governments told the agency that they expect trade in Russian metals on over-the-counter markets to continue, but at a discount.
In 2021, Russia accounted for 5% and 7% of US imports of aluminum and nickel, respectively, led by the supplier in both cases was Canada (.pdf). With the invasion of Ukraine, the United States, like the European Union, increased purchases of these metals, Reuters noted. Prices for them also reached record levels since the beginning of the war.
In 2023, the United States introduced protective duties on Russian metals. As a result, as RBC calculated, over the past year, compared to 2021, the total volume of imports of aluminum, nickel and copper decreased by more than 12 times — from 870 to 70 million dollars.