The US government on Friday introduced fresh sanctions on Russia in an effort to cut its revenue streams. The US Department of the Treasury, in line with similar actions from the United Kingdom, has blocked the import of certain metals into the US while limiting their use on global metal exchanges and trading desks.
Metals included under the new sanctions include aluminum, copper, and nickel, with the sanctions to apply to these metals of Russian origin produced on or after April 13, 2024. At the same time, the Treasury has prohibited the exportation, reexportation, sale, or supply of these metals to anyone located in the Russian Federation via global metals exchanges or as part of a physical settlement of a derivatives contract.
The measure is expected to block Russian metals from trading on the London Metal Exchange or the Chicago Mercantile Exchange.
“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. By taking this action in a targeted and responsible manner, we will reduce Russia’s earnings while protecting our partners and allies from unwanted spillover effects,” commented Janet Yellen, Secretary of the Treasury.
Russia was the third largest producer of aluminum in 2022 as per the Government of Canada, producing 3.7 million metric tones of the metal. RUSAL, which is based in Moscow, is said to be the largest primary aluminum producing company outside of China. The largest producer in 2022 was China, at 40 million tons, followed by India at 4.0 million tonnes, Russia at 3.7 million tons, and Canada at 3.0 million tons.
Russia meanwhile was the sixth largest producer of copper in 2022, producing 1,000,000 metric tons, and the third largest producer of nickel, producing 220,000 tonnes.
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