On April 13,2024,the United States and the United Kingdom jointly announced an important new sanction measure aimed at significantly reducing Russia’s revenue from the trade of key metals such as aluminum,copper,and nickel.This measure includes banning the import of these metals originating from Russia into the United States and restricting their use in global metal exchanges and over-the-counter derivatives transactions.

According to Executive Order No.14068 issued by the U.S.Department of the Treasury,starting from April 13,2024,it is prohibited to import aluminum,copper,and nickel originating from the Russian Federation that are produced after this date.Additionally,according to the supplementary decision of Executive Order No.14071,it is prohibited to export,re-export,sell,or provide services to any person located in the Russian Federation.These services include providing guarantee services for metals produced on or after April 13,2024,in global metal exchanges,as well as providing services for the purchase of metals produced on or after April 13,2024,as part of the physical settlement of derivative contracts.

These measures mean that major metal trading platforms such as the London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME) will be prohibited from accepting newly produced aluminum,copper,and nickel from Russia.These exchanges play a key role in the global industrial metal market,so this sanction will have a significant impact on Russias metal exports.

This move is the latest expansion of the economic sanctions imposed by the US and the UK on Russia,aiming to respond to Russias behavior on the international stage by weakening its important sources of revenue.The US Department of the Treasury said that these measures will reduce the funds the Russian government obtains from the global metal market,thus limiting its ability to implement policies that do not conform to international norms.

Analysts pointed out that it is still unclear how these new sanctions will affect the global metal market.Russia is an important producer of aluminum,copper,and nickel in the world,and these metals play a key role in the global construction,electronics,and transportation industries.Therefore,this ban may cause global supply shortages and price fluctuations of these metals.

In addition,analysts also pointed out that these sanctions may force some large multinational companies to reconsider their supply chain configurations,especially those manufacturers and consumers who rely on Russian metals.Companies may need to find metal supply sources in other countries to avoid supply disruptions caused by the sanctions.