London Metal Exchange And the EU Against Raw Materials From Russia

Last updated: 2023-03-04 06:14

Any move by the London Stock Exchange to ban supplies from Russia could have serious consequences for global metals markets.


The London Metal Exchange stated it was considering abandoning trading in Russian raw materials. At the same time, the European Union is going to introduce new sanctions against steel products from the Russian Federation.

The London Metal Exchange may stop trading in Russian raw materials. Now the institution is deciding whether it should continue trading, and store Russian metals in its warehouses, Bloomberg reported.

Later, the exchange itself confirmed this, noting that the final decision has not yet been made and will be discussed with market participants. In particular, we are talking about the future of physical deliveries for 2023, said Matthew Chamberlain, CEO of the London Metal Exchange.

The exchange has previously stated that it does not plan to take additional restrictions that would go beyond the already imposed sanctions. On this news, the cost of aluminum and nickel jumped, while the shares of Russian miners decreased.

Any move by the London Stock Exchange to ban supplies from Russia could have serious consequences for global metals markets, as the country is the largest supplier of aluminum, nickel and copper. Fears that sanctions could disrupt the export of Russian nickel have already provoked a large-scale short squeeze on the stock exchange in March, Bloomberg stated.

After the start of a special operation in Ukraine and the imposition of sanctions against Russia, the copper committee of the London Metal Exchange, an advisory group of industry representatives, voted to ban new supplies of Russian metal. The other metals advisory groups were against the idea at the time.

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