In a joint effort to further cripple Russia’s economy amid the ongoing conflict in Ukraine, the United States and the United Kingdom have announced restrictions on the trade of new Russian-origin metals. This includes aluminum, copper, and nickel, which are key exports for Russia.
The decision comes after the Group of Seven nations pledged in February to reduce Russia’s revenues from metals as the invasion into Ukraine continues to escalate. The move is aimed at limiting Russia’s earnings from metals, which have reportedly brought in $40 billion for the nation over the past two years.
Treasury Secretary Janet Yellen emphasized the targeted nature of the restrictions, stating that they are designed to reduce Russia’s earnings while minimizing any negative impact on consumers and producers. The ban will prevent new Russian metals from being traded on global metal exchanges and in derivatives trading, but existing metals produced before the implementation of the restrictions will still be allowed.
This latest action adds to a series of sanctions imposed by the U.S. and the EU in response to Russia’s aggression in Ukraine. Previous measures have targeted Russian banks, elite individuals, and key industries such as gold, gas, and diamonds. The goal is to isolate Russia economically and financially in an effort to pressure the country to end its military intervention in Ukraine.
The restrictions on Russian metals are expected to further strain the country’s economy and limit its ability to fund the ongoing conflict. The U.S. and the U.K. are working in coordination with other allies to ensure that the sanctions are effective in achieving their intended goals.