US, UK Announce New Restrictions on Russian Metals
The U.S. and the U.K. on April 12 expanded certain restrictions on Russia-related metals, including a new services ban on Russian aluminum, copper and nickel.
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A sanctions determination published by the Office of Foreign Assets Control will restrict “warranting services” for those metals produced on or after April 13 “on a global metal exchange.” It also places restrictions on any “services to acquire the metals produced on or after April 13, 2024 as part of the physical settlement of a derivative contract,” OFAC said.
Both OFAC and the U.K.’s treasury agency said the restrictions will force metal exchanges, including the London Metal Exchange and Chicago Mercantile Exchange, to stop accepting new aluminum, copper and nickel produced by Russia. “Today’s action will go further to constrain Russia’s ability to make money from its shrinking metals exports, dealing another blow to President Vladimir Putin’s funding for his illegal war in Ukraine,” the U.K. said.
A second sanctions determination published by OFAC places U.S. import restrictions on Russian aluminum, copper and nickel produced on or after April 13, and a new general license authorizes certain transactions until 12:01 a.m. EDT July 11. The U.K. said legislation that would ban imports of Russian aluminum, copper, nickel and other metals was introduced in Parliament in December.
OFAC said metal exchanges "provide a central role in facilitating the trading of industrial metals around the globe," and by "taking joint action, the United States and UK are depriving Russia and its metals producers of an important source of revenue." The agency issued several new frequently asked questions to provide more information on the new restrictions.