US and UK to impose limitations on the trade of metals of Russian origin | Global News

The US and UK announced on Monday that they will begin restricting the trade of new Russian-origin metals, including aluminum, copper, and nickel, on global metal exchanges and in derivatives trading. This move comes as part of the Group of Seven nations’ commitment to reduce Russia’s revenues from metals in response to its ongoing invasion of Ukraine.

Russian metals, such as aluminum, steel, and titanium, are key exports for the nation, bringing in $40 billion in revenue over the past two years. However, British and American officials have stated that the economic impact of the ban on consumers and producers will be negligible.

Treasury Secretary Janet Yellen emphasized the goal of limiting Russia’s earnings from metals to weaken its ability to continue the conflict in Ukraine. “Our new prohibitions on key metals, in coordination with our partners in the United Kingdom, will continue to target the revenue Russia can earn to continue its brutal war against Ukraine,” she said in a news release.

The restrictions will prevent new Russian metals from being traded on exchanges such as the London Metal Exchange and Chicago Mercantile Exchange. However, metals produced before midnight on Saturday in London will still be permitted.

This latest action adds to the sanctions already imposed by the US and EU on Russia’s financial institutions, including freezing assets and excluding them from the SWIFT bank messaging system. Previous sanctions have also targeted Russian gold, gas, and diamonds.

The US and UK are taking a targeted and responsible approach to reduce Russia’s earnings while protecting their partners and allies from any negative effects.