Helena Lyng Blak
31 weeks ago

US and UK to Disrupt Russian Metal Revenue

In a significant move, the US and UK target Russia's metal exports to cut off funding for the ongoing conflict in Ukraine.
Joaquin Corbalan P / Shutterstock.com
Joaquin Corbalan P / Shutterstock.com

On Friday, the United States Department of Treasury, alongside the United Kingdom, announced new prohibitions issued on aluminum, copper, and nickel intended to disrupt the Russian revenue from the export of these metals.

“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,” said Secretary of the US Treasury Janet L. Yellen in a statement.

“By taking this action in a targeted and responsible manner, we will reduce Russia’s earnings while protecting our partners and allies from unwanted spillover effects.”

The prohibition is banning the import of aluminum, copper, and nickel of Russian origin into the US, as well as limiting the use of the metals on global exchanges. 

The action also prohibits the exportation, reexportation, sale, or supply to any person located in Russia of warranting services for the metals or services to acquire the metals if said metals are produced on or after April 13, 2024. 

“Disabling Putin’s capacity to wage his illegal war in Ukraine is better achieved when we act alongside our allies,” said Jeremy Hunt, United Kingdom Chancellor of the Exchequer. 

“Thanks to Britain’s leadership in this area, our decisive action with the U.S. to jointly ban Russian metals from the two largest exchanges will prevent the Kremlin funnelling more cash into its war machine.”

According to the US Treasury, the recent action will not impact banks serving as intermediaries in payments concerning Russian metals. 

Additionally, the restrictions do not apply to situations where products contain aluminum, copper, or nickel of Russian origin, provided that these metals have been significantly integrated into another product outside of Russia.

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