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The UK and the U.S. have announced joint action to restrict prohibited Russian metal exports by extending the existing bans to the world’s two largest metal exchanges.
The London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME) will no longer trade new aluminium, copper and nickel produced by Russia.
The Prime Minister first announced the intention to act on banning Russian metals in May 2023. New UK legislation was introduced in December last year, banning imports of Russian metals, including aluminium, copper, and nickel. Separately, the U.S. implemented tariff measures on various Russian metal imports.
The UK has placed extensive trade sanctions on Russian commodities, metal being Russia’s most significant export commodity after energy.
The new measures announced on 12th April will exempt existing stock of Russian metal that can still be traded or withdrawn. This exemption minimises any risk of market instability.
Sanctions Minister, Anne-Marie Trevelyan made the following statement:
‘Today’s action ratches up economic pressure on Putin, further depriving him of the key resources and revenue streams he needs to fund his illegal war in Ukraine.
We have now imposed extensive trade sanctions on Russian-origin oil, gas, gold, diamonds, iron, steel, and base metals, dealing a heavy blow to Putin’s war economy. But we must continue to work with our allies to further tighten the screws on the Kremlin.’
Further information:
- To prevent disruption to markets, there are no restrictions on acquiring existing stockpiles of Russian metals already on the exchange.
- This action does not cover titanium or platinum group metals, such as platinum and palladium, which were not included in the UK’s prohibition in December, due to supply chain sensitivities.
Further information with links to the UK legislation can be found here:
Notice to Importers 2953: Russia import sanctions - GOV.UK (www.gov.uk)
The link to the Trade licence for the acquisition of metals is here:
Trade Licence for acquisition of metals - GOV.UK (www.gov.uk)
The original Government press release of the 12th of April 2024 can be found here:
https://www.gov.uk/government/news/uk-and-us-to-clamp-down-harder-on-the-trade-of-russian-metals
If you are interested in exploring this topic further, you might find it worthwhile to consider the training courses and live clinics offered by Strong & Herd LLP:
Focus On: Embargoes, Sanctions and End-Use Controls
This half-day session examines why companies and employees should be aware of embargoes and sanctions. Using the UK regulations as the primary guide, it will review the growth in sanctions on Russia, as well as current financial sanctions in place managed by OFSI. It concentrates mainly on the export of goods and includes a look at end-use, end-user and transit controls. Violating these controls can result in fines, reputation loss, and criminal charges.
Import Essentials: Focus on Importing
This core S&H training course is an excellent way to learn more about importing into the UK. It covers customs issues, as well as implications of choosing the correct shipping term, paying duties, and managing the logistics. Whether in sourcing, procurement, finance, customer services, shipping or import administration, attendance will increase your confidence and awareness in dealing with overseas suppliers, transport companies, banks and HM Revenue & Customs.
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Stay informed about customs and international trade matters by subscribing to our OneCall™ service. This comprehensive offering includes a dedicated email helpline for support, timely practical updates direct to your inbox (Did You Know?), monthly UK Customs & Trade Briefings and access to an interactive members' area with an exclusive community for our subscribers.
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