The London Metal Exchange on Tuesday suspended from its approved warehouses Russian nickel exports dated on or after July 20, a move that follows the earlier decision to ban other Russian metals including copper, lead, primary aluminum, and aluminum alloy from British warehouses.
The decision also follows after the UK government imposed 35% additional duties on said metals, now including nickel, as part of the set of sanctions imposed on Moscow related to its invasion of Ukraine.
While the exchange said there was no Russian nickel currently stored in the approved warehouses in Hull and Liverpool, it added that anyone who skirts the ban risks being hit with high additional costs.
Russia sits in the third spot of the world’s biggest nickel producers, following Indonesia and the Philippines.
After hitting record-high levels when the Russia-Ukraine war broke out, nickel prices have started to retreat to levels last seen pre-invasion.
Back in June 2022, it was reported that the exchange is being sued for US$456.4 million related to the nickel trading suspension on March 8. The suit “seeks to challenge the decisions giving effect to and maintaining the cancellation of the claimants’ alleged trades in nickel contracts.”
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.