Billion dollar business for Moscow
British and Americans stop metal imports from Russia
April 13, 2024, 7:51 a.m
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The sanctions imposed by Western states against Russia are numerous. The ban on imports of raw materials in particular is intended to hit the Kremlin. The USA and Great Britain now also say Njet on nickel, aluminum and copper. Moscow is threatened with a loss of billions.
The USA and Great Britain are extending their import ban on metals from Russian production because of the Russian war of aggression in Ukraine. Aluminum, copper and nickel produced from Russia after April 13th will no longer be traded on the world’s two largest metal exchanges in London and Chicago, the US and British Treasury said. This would exclude Russian metal producers from the profits of the London Metal Exchange and the Chicago Mercantile Exchange and reduce an important source of income for the Kremlin to finance its war in Ukraine.
The joint action by the two countries is based on the ban on metal imports and targets Russian exports of aluminum, copper and nickel worth $40 billion, the British Treasury said. Metal exchanges play a central role in facilitating trade in industrial metals around the world.
The bans were narrowly worded to limit market disruption by exempting Russian aluminum, nickel and copper produced before April 13, 2024, said U.S. Department spokesman Matthew Miller. The US Treasury Department further announced that this measure would implement the G7 leaders’ declaration to reduce Russia’s income from metals trading.
U.S. Treasury Secretary Janet Yellen said the bans were intended to reduce the revenue “that Russia can generate to continue its brutal war against Ukraine,” according to the statement. British Finance Minister Jeremy Hunt made similar comments. He said the measure to ban Russian metals from the two largest stock exchanges was intended to prevent “the Kremlin from pouring even more money into its war machine.” The US had already imposed tariffs on various Russian metal imports. Now the import of newly produced aluminum, nickel and copper from Russia has been banned.
Metals are Russia’s second largest export after energy. According to British figures, the value of exports fell from $25 billion (around €23 billion) in 2022 to $15 billion last year.