The US and the UK have launched a crackdown on trades in Russian metals, in a move designed to limit Moscow’s export revenue and restrict its ability to fund the war in Ukraine.
The action, announced by the two countries on Friday, marks an aggressive effort by the allies to damage Russia’s income — but could disrupt trading at exchanges including the London Metal Exchange and Chicago Mercantile Exchange.
“Our new prohibitions on key metals, in co-ordination with our partners in the United Kingdom, will continue to target the revenue Russia can earn to continue its brutal war against Ukraine,” said Janet Yellen, the US Treasury secretary.
She added that the US and UK were “taking this action in a targeted and responsible manner” in order to protect “our partners and allies from unwanted spillover effects”.
The action will affect trade in aluminium, nickel and copper. Officials said Russia had made $40bn from sales of the metals over the past two years, while it has been fighting in Ukraine.
Russia supplies about 6 per cent of the world’s aluminium, 5 per cent of nickel and 4 per cent of copper, according to CRU Group, a consultancy.
The US and UK have placed sanctions on several Russian metals producers already but the move on Friday is the first time that it has placed a blanket ban on certain Russian minerals trading on the world’s largest metals exchanges.
