New Measures Aim to Limit Russia’s Revenues Amid Ongoing Conflict with Ukraine
The United States and the United Kingdom have announced plans to impose restrictions on 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 made in February to reduce Russia’s revenues from metals amidst the ongoing conflict in Ukraine.
Russia, a major exporter of metals such as aluminum, steel, and titanium, will now face limitations on its metal trade, aiming to curtail its earnings from this sector. According to British officials, metals have generated approximately $40 billion in revenue for Russia over the past two years.
Treasury Secretary Janet Yellen emphasized the strategic intent behind these restrictions, stating that they aim to target Russia’s revenue streams while minimizing adverse effects on consumers and producers. Yellen asserted that the coordinated efforts with the UK are designed to limit Russia’s financial resources fueling its actions in Ukraine.
The newly announced prohibitions will prevent the trading of new Russian metals on exchanges like the London Metal Exchange and the Chicago Mercantile Exchange. However, metals produced before midnight on Saturday in London will remain exempt from these restrictions.
In response to Russia’s invasion of Ukraine, the US and the European Union have implemented various sanctions targeting Russia’s financial institutions and elite members. These measures include freezing assets of Russian banks, excluding them from the SWIFT banking messaging system, and previously sanctioning Russian commodities such as gold, gas, and diamonds.
As geopolitical tensions continue to escalate, the US and its allies are intensifying economic pressure on Russia, aiming to deter further aggression while safeguarding global stability.
