The US and the United Kingdom will ban the import of Russian metals to reduce financing of the war in Ukraine

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US and UK ban Russian metal imports to disrupt funding for war in Ukraine

The United States government, in conjunction with the United Kingdom, announced on Friday that they will prohibit the import of Russian metals in an effort to disrupt the financing of the ongoing war in Ukraine. The measure specifically targets aluminum, copper, and nickel produced in Russia, as well as bans metal exchanges such as the Chicago Mercantile Exchange (CME) and the London Metal Exchange (LME).

US Treasury Secretary Janet Yellen stated that the decision was made to reduce Russia’s gains while protecting allies from any negative consequences. The British Chancellor of the Exchequer, Jeremy Hunt, emphasized that the joint action will prevent the Kremlin from channeling more funds into their military operations.

The sanctions, which do not affect Russian metal produced before April 13, are part of a series of measures taken by the US and its allies since the start of the Russian invasion of Ukraine in February 2022. The goal is to isolate Russia from the global financial market and disrupt its ability to finance the war.

The ban on Russian metal imports is expected to have a significant impact on Russia, as metals are the country’s second-largest export after energy. The move aims to deprive Russia and its metal producers of a vital source of income, further weakening their ability to fund military aggression.

Meanwhile, concerns have been raised about the high proportion of Russian-origin metal in London Metal Exchange inventories, particularly in light of the conflict in Ukraine. The share of Russian-origin copper and nickel stocks has recently increased, prompting some producers and consumers to actively avoid Russian metal.

The joint decision by the US and the UK marks a significant escalation in efforts to pressure Russia and disrupt its ability to finance the war in Ukraine. The coordinated action is expected to have a significant impact on the Russian economy and further isolate the country from global markets.

(With information from AFP, EFE, and Reuters)