The London Metal Exchange (LME) explained this Saturday the measures it is taking to comply with the new sanctions from the United States and the United Kingdom, which prohibit the exchanges from accepting new aluminum, copper and nickel produced by Russia and the import of the metals. to both countries.
The LME acknowledged that one of the consequences of the modified sanctions package announced on Friday may be some uncertainty in the market. Russia is a major producer of aluminum, copper and nickel.
The Metal Exchange said it will impose an immediate suspension of collateral on Russian metal produced starting April 13.
“LME and LME Clear are taking appropriate steps to enable the continued participation of their members and clients in the daily settlement process,” it said in a statement.
However, it said Russian metals produced before April 13 can be guaranteed by the owner of the metal and can be purchased by LME Clear, and by UK members and customers.
The recent moves by Washington and London are aimed at disrupting Russian export earnings as Moscow continues its full-scale invasion of Ukraine, which has left tens of thousands dead and injured and reduced cities to rubble.
On Friday, a British official said London hoped any market disruption would stabilize quickly and that the government had consulted with its U.S. counterparts, the LME, the Bank of England and the Financial Conduct Authority to minimize any potential disruption.
Both the British and US measures will exempt stocks of Russian metal on these global exchanges so they can continue to be traded and withdrawn to minimize the risk to market stability, the British government said in a statement.
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– 2024-04-17 13:47:22
