The U.S. Department of the Treasury, in coordination with the United Kingdom, has imposed two new prohibitions to restrict revenue earned by Russia from the export of aluminum, copper, and nickel.
This decision prohibits the import of aluminum, copper, and nickel of Russian origin into the United States and limits the use of Russian-origin aluminum, copper, and nickel on global metal exchanges and in over-the-counter derivatives trading.
Janet Yellen, the U.S. Treasury Secretary, stated, "Our new prohibitions on key metals, in coordination with our partners in the United Kingdom, will continue to target the revenue Russia can earn to continue its brutal war against Ukraine."
The U.S. Treasury issued a new decision banning the import of aluminum, copper, and nickel into the United States from the Russian Federation, produced on or after April 13, 2024. Additionally, the Treasury issued an additional decision that prohibits:
- The export, re-export, sale, or supply of any person located in the Russian Federation with warranty services for metals manufactured on or after April 13, 2024, on the global metal exchange.
- Services for the purchase of metals manufactured on or after April 13, 2024, under physical settlement for a derivative contract.
As a result of today's collective actions, metal exchanges such as the London Metal Exchange and the Chicago Mercantile Exchange will be prohibited from accepting new aluminum, copper, and nickel produced in Russia.
The UK's Ministry of Finance stated that the joint actions of the United Kingdom and the United States are based on an import ban on metal exports of aluminum, copper, and nickel from Russia amounting to $40 billion.
"The United Kingdom and the United States have jointly announced tougher restrictions on banned exports of Russian metal by putting the world's two largest metal exchanges under the existing ban," the press release said.
Meanwhile, the British Ministry noted that there are no restrictions on purchasing existing stocks of Russian metals already on the exchange to prevent market disruptions.
This action does not apply to titanium or platinum group metals such as platinum and palladium, which were not included in the UK's ban in December due to supply chain sensitivities.
According to the British Ministry of Finance, metals are Russia's largest export after energy, although their value has decreased since Russia's invasion of Ukraine. In 2022, they amounted to $25 billion, falling to $15 billion in 2023 due to G7 and allied efforts to unwind the market. Today's actions will further limit Russia's ability to earn money from metal exports, dealing another blow to dictator Vladimir Putin's funding of his illegal war against Ukraine.
