Team Blitz India
THE UK and the US have joined forces in a fresh crackdown on prohibited Russian metal exports, extending the existing bans to encompass the world’s two largest metal exchanges.
On April 12, the two nations prohibited trading of new aluminium, copper, and nickel produced by Russia on the London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME).
These metals, key exports for Russia following energy, have seen a decline in value since the invasion of Ukraine, dropping from $25 billion in 2022 to $15 billion in 2023, partly due to efforts by the G7 and allies to curb the market.
The action aims to further limit Russia’s ability to profit from its diminishing metals exports, striking another blow to President Vladimir Putin’s financing of the war in Ukraine.
Jeremy Hunt, Chancellor of the Exchequer, emphasised the effectiveness of disabling Putin’s capacity to wage war in Ukraine through coordinated action with allies. “Disabling Putin’s capacity to wage his illegal war in Ukraine is better achieved when we act alongside our allies. Thanks to Britain’s leadership in this area, our decisive action with the US to jointly ban Russian metals from the two largest exchanges will prevent the Kremlin funnelling more cash into its war machine,” he said.
Janet L Yellen, US Secretary of the Treasury, echoed the sentiment, highlighting how the new prohibitions on key metals, in coordination with the UK, will target Russia’s revenue and hinder its war efforts against Ukraine.
The Prime Minister initially announced the intention to act on banning Russian metals in May 2023, with UK legislation introduced in December to directly ban imports of Russian metals. Meanwhile, the US imposed tariffs on various Russian metal imports.
The measures exempt the existing stocks of Russian metal on these global exchanges to allow for continued trading and withdrawal, mitigating the risk to market stability. This announcement builds upon the UK’s extensive sanctions on Russia since the invasion of Ukraine.
