US and UK Impose Limits on Trade of Metals of Russian Origin

 

WASHINGTON (AP) — In an effort to curb Russia's revenues from metal exports, the United States and the United Kingdom have announced restrictions on the trade of new Russian-origin metals. This includes aluminum, copper, and nickel, which will no longer be allowed to be traded on global metal exchanges and in derivatives trading.

 

The decision comes as a follow-up to the commitment made by the Group of Seven nations in February to reduce Russia's earnings from metals, given its prolonged invasion into Ukraine. Russia is a major exporter of metals such as aluminum, steel, and titanium. However, officials from both the U.S. and the U.K., speaking anonymously, have stated that the ban's economic impact on consumers and producers will be minimal.

 

The primary objective is to limit Russia's revenues from metals, which have amounted to $40 billion over the past two years, according to British officials. Treasury Secretary Janet Yellen emphasized that the new restrictions, implemented in collaboration with the United Kingdom, aim to target Russia's earnings and hinder its ongoing conflict with Ukraine. Yellen stated that the action is being taken in a targeted and responsible manner to safeguard partners and allies from any adverse effects.

 

Under the new measures, new Russian metals will be prohibited from trading on exchanges such as the London Metal Exchange and Chicago Mercantile Exchange. However, metals produced before midnight on Saturday in London will still be permitted.

 

Since Russia's invasion of Ukraine, both the U.S. and the EU have imposed sanctions on Russia's major banks and elite individuals, frozen assets held by the country's Central Bank outside of Russia, and excluded its financial institutions from the SWIFT bank messaging system.

 

Furthermore, the U.S. and the U.K. have previously imposed sanctions on Russian gold, gas, and diamonds.