The London Metal Exchange (LME) has suspended deliveries of some Russian metals to its warehouses amid a recent import duty hike. The move was announced by the exchange earlier on Friday.
“Following the announcement by the UK of an additional 35% duty on imports of Russian copper, lead, primary aluminum and aluminum alloys, this notice announces the immediate suspension of the placement of [these metals] … at warehouses registered with the LME in the UK,” the exchange stated.
Meanwhile, if the warehouse can prove that the date of export from Russia was before March 25, 2022, it can keep the batch. According to the exchange, however, it currently does not have any Russian metal on warrant in LME-listed UK warehouses.
A little over a week ago, the LME said it had no plans to ban Russian metals from its system, despite calls from some members to do so amid the Ukraine-related sanctions on Russia.
Russia is a major metals exporter and analysts advise against subjecting them to sanctions, as this could lead to shortages and further price surges, propelling global inflation higher.