It appears that Russian President Vladimir Putin isn’t having it with additional sanctions being levied against it by the United States. In the most “I’m not fired, I quit!” moment yet of the ongoing geopolitical tensions, it appears that the Russian President is moving to halt exports of its products.
The move, of course, is in relation to the announcement this morning by President Biden that the US would be banning the importation of Russian oil and gas products. Obviously, the sanction was conducted in connection with the Russian invasion of Ukraine.
The United Kingdom also announced this morning that it would be moving to cut off Russian oil imports, however this would not take effect immediately, but rather be implemented by the end of 2022, so as to enable producers to rework their supply chains. Currently, its estimated that 6% of UK imports come from Russia.
In response to those sanction announcements, it appears that Putin has taken retaliatory measures by now banning the export of products and raw materials until December 31.
The news was reported by RIA, a Russian news agency, indicating that a decree had been signed by Putin today specifically applies to certain products and raw materials, “the list of which will be determined by the government.” The ban on exports reportedly only applies to non-personal use items.
This, of course, will have far reaching implications for a number of sectors in which Russia is a major piece of the supply chain for. The country is a major supplier for numerous raw materials, including uranium, palladium, nickel, neon, and other base materials.
Uranium was last reported to be trading at $52.75 on the offer, as per Numerco, up 0.95% on the day following a continued rally over the last several days.
Nickel futures, as many are already aware, have been halted for trading on the London Metals Exchange following the base metal soaring beyond $100,000 per tonne in Asian market trading. The Exchange said that the trading would be halted for “at minimum the remainder of today,” when making the announcement, while indicating that it will “give consideration to a possible multi-day closure, given the geopolitical situation which underlies recent price moves.”
It was also announced that the exchange would also be reversing trades that occurred today as the result of a short squeeze – proving yet again that those with the money make the rules.
Palladium futures meanwhile are up over 7% in current trading, as per Capital.com. The precious metal is currently sitting at $3,186 at the time of writing.
Information for this briefing was found via RIA, Investing.com, Tradingview, and the sources mentioned. 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.
