The US and Britain are extending their ban on imports of metals produced in Russia, due to the Russian war against Ukraine.
Aluminium, copper and nickel produced in Russia after April 13 will no longer be traded on the world's two largest metal exchanges in London and Chicago, the US and British treasury departments announced overnight on Friday night.
This would exclude Russian metal producers from the profits of the London Metal Exchange and the Chicago Mercantile Exchange and reduce an important source of income for the Kremlin to finance its war in Ukraine.
The joint action by the two countries builds on the ban on metal imports and targets Russian exports of aluminium, copper and nickel worth $40 billion, the British Treasury added.
Metals are Russia's largest export commodity after energy. The metal exchanges play a central role in facilitating trade in industrial metals around the world.
The bans have been narrowly defined to limit market disruption by exempting Russian aluminium, nickel and copper produced before April 13, 2024 from the ban, said US Department spokesman Matthew Miller.
The US Treasury Department also announced that this measure implements the declaration by the G7 heads of state and Prime Ministers to reduce Russia's revenues from the metals trade.
"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 Treasury Janet L. Yellen.
"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.
British Chancellor of the Exchequer Jeremy Hunt expressed a similar view.
"Disabling Putin's capacity to wage his illegal war in Ukraine is better achieved when we act alongside our allies," he said.
"Thanks to Britain's leadership in this area, our decisive action with the US to jointly ban Russian metals from the two largest exchanges will prevent the Kremlin funnelling more cash into its war machine," Hunt said.