Sanctions on Russian metal may spark market chaos — London Metal Exchange
The LME recognizes that a consequence of the Amended Sanctions Package may be to cause a degree of market uncertainty, which may then result in market participants warranting Relevant Metal as a safeguarding move.
Members of the London Metal Exchange (LME) will be required to comply with the new sanctions imposed by the UK and the US on Russian metals, but the restrictions could cause some market uncertainty, the LME said in a statement.
"The LME has issued a market notice imposing an immediate suspension on the warranting of Russian metal produced on or after 13 April 2024," the statement said.
"The LME recognizes that a consequence of the Amended Sanctions Package may be to cause a degree of market uncertainty, which may then result in market participants warranting Relevant Metal as a safeguarding move," it added.
On April 12, the United States and the United Kingdom expanded sanctions on Russia in the trade of metals. As a result, the London Metal Exchange (LME) and the Chicago Mercantile Exchange will no longer be allowed to replenish the stocks of aluminum, copper and nickel in their warehouses through the supply of Russian raw materials. London and Washington said in a joint statement that the restrictions do not cover the existing reserves of Russian metals in the warehouses of both exchanges, with which it will still be possible to carry out trading operations, However, the London Metal Exchange and the Chicago Mercantile Exchange will no longer trade new aluminum, copper and nickel produced by Russia.
Last December, the UK completely banned the import of copper, aluminum and nickel of Russian origin. In the US, a similar ban is starting to take effect now, but does not apply to metals produced before April 13, 2024.
Source
Members of the London Metal Exchange (LME) will be required to comply with the new sanctions imposed by the UK and the US on Russian metals, but the restrictions could cause some market uncertainty, the LME said in a statement.
"The LME has issued a market notice imposing an immediate suspension on the warranting of Russian metal produced on or after 13 April 2024," the statement said.
"The LME recognizes that a consequence of the Amended Sanctions Package may be to cause a degree of market uncertainty, which may then result in market participants warranting Relevant Metal as a safeguarding move," it added.
On April 12, the United States and the United Kingdom expanded sanctions on Russia in the trade of metals. As a result, the London Metal Exchange (LME) and the Chicago Mercantile Exchange will no longer be allowed to replenish the stocks of aluminum, copper and nickel in their warehouses through the supply of Russian raw materials. London and Washington said in a joint statement that the restrictions do not cover the existing reserves of Russian metals in the warehouses of both exchanges, with which it will still be possible to carry out trading operations, However, the London Metal Exchange and the Chicago Mercantile Exchange will no longer trade new aluminum, copper and nickel produced by Russia.
Last December, the UK completely banned the import of copper, aluminum and nickel of Russian origin. In the US, a similar ban is starting to take effect now, but does not apply to metals produced before April 13, 2024.
Source