London exchange further restricts Russian metals
The London Metal Exchange (LME) has limited new deliveries of Russian zinc and copper to its warehouses as part of the sanctions imposed on Moscow by the UK government last month. The move was announced by the exchange on Wednesday.
According to a statement, the new restrictions target metal produced by Russia’s Ural Mining and Metallurgical Company (UMMC), and its subsidiary Chelyabinsk Zinc Plant (Chelyabinsk).
“In order for a metal owner to place onto warrant any metal produced by an Affected Brand, the metal owner must provide evidence to the LME that, as of September 26, 2022, UMMC or Chelyabinsk does not own or have any legal or other economic interests in relation to the metal,” the LME stated, noting that it may request proof that the relevant conditions have been satisfied.
The prices of zinc and copper have risen following the news. Zinc jumped almost 5% during trading on the LME, while copper climbed 1.3% and aluminum rose 0.7%.
The LME had been saying that it had no plans to ban Russian metals from its system, however, in April the exchange suspended some deliveries to its warehouses.
Russia is a major metals exporter and analysts have been cautioning against subjecting its metal miners to sanctions, as this could lead to shortages and further price surges, propelling global inflation higher.
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