US & UK Institute Joint Metals Trading Ban

In a joint action with UK officials, the Treasury Department issued two new prohibitions to disrupt the revenue that Russia earns from its export of aluminum, copper, and nickel. 

This new action prohibits the import of Russian-origin aluminum, copper, and nickel into the US and UK, and limits the use of Russian-origin aluminum, copper, and nickel on global metal exchanges and in over-the-counter derivatives trading.

Reuters reports available aluminum stocks in London Metal Exchange-registered warehouses were 91% of Russian origin in March, unchanged from the previous month, LME data showed on Wednesday.

This action solidifies Treasury’s follow through on the G7 Leaders’ Statement to reduce Russia’s revenues from metals. 

 Secretary of the Treasury Janet L. Yellen noted the measured nature of the move. “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,” she said.

“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," said  Jeremy Hunt, UK Chancellor of the Exchequer.

To implement this policy, Treasury has issued a new determination under E.O. 14068 prohibiting the importation into the United States of aluminum, copper, and nickel of Russian Federation origin produced on or after April 13, 2024

Treasury also issued a complementary determination under Executive Order (E.O.) 14071 that prohibits the exportation, reexportation, sale, or supply to any person located in the Russian Federation of

1.  warranting services for the metals produced on or after April 13, 2024 on a global metal exchange and
2. services to acquire the metals produced on or after April 13, 2024 as part of the physical settlement of a derivative contract.  

As a result of today’s collective actions, metal exchanges, like the London Metal Exchange (LME) and Chicago Mercantile Exchange (CME), will be prohibited from accepting new aluminum, copper, and nickel produced by Russia. 

For more information on the implementation of today’s action, please see OFAC’s Frequently Asked Questions 1168 through 1172.

The Department of the Treasury's Office of Foreign Assets Control (OFAC) is publishing a

Determination for Prohibitions Related to Imports of Aluminum, Copper, and Nickel of Russian Federation Origin, and a

Determination for Prohibitions on Certain Services for the Acquisition of Aluminum, Copper, or Nickel of Russian Federation Origin.

OFAC is issuing Russia-related General License 13I, "Authorizing Certain Administrative Transactions Prohibited by Directive 4 under Executive Order 14024".

OFAC is also issuing five new, Russia-related Frequently Asked Questions (FAQs 1168 - 1172) and amending two Russia-related Frequently Asked Questions (FAQs 1019 and 1128).

For more information on today's action, please visit this page.