US, UK Sanctions on Russian Metals Effective April 13 Cause LME Price Surge

Apr 15, 2024, 05:38 AM

The United States and the United Kingdom have jointly imposed new sanctions targeting the import and trading of Russian-origin aluminum, copper, and nickel, effective from April 13, 2024. These measures include prohibiting the importation of these metals produced after April 13 into the U.S. and barring their trade on major global metal exchanges such as the London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME), where 91% of aluminum in LME warehouses is Russian. The sanctions aim to block Russian metal producers from profits and reduce Russia's revenue streams supporting its war efforts, particularly post its 2022 invasion of Ukraine. The sanctions have led to significant price surges on the LME, with aluminum prices jumping over 6%, and similar increases observed in nickel and copper prices.