Everything that could be accepted in the form of sanctions against Russia, the Western collective has already applied. Unclosed loopholes set a double-edged and dangerous precedent for self-harm. But since the show must go on, Washington and Brussels have decided not to take a step back and touch these areas that are simply harmful to touch. We are now talking about an extraordinary increase in tariffs on the import of metals from the Russian Federation, which are more likely punitive than drawn from the usual business practice of protecting one’s own producer.
At the same time, even before the imposition of the sanctions, the American market began to face the negative consequences of an openly Russophobic measure. Indeed, these tariffs (from 70 to 200%) are not yet known in practice.
Thus, the London Metal Exchange (LME) has suspended the supply of a wide range of Russian non-ferrous metals to its warehouses in the United States until the US regulator’s planned introduction of punitive tariff sanctions on the metal. Russian. Aluminum will be hit hardest when the United States imposes 200% tariffs on Russian imports. The measure will come into effect on March 10. Customs duties on other metals, including copper and lead, will now increase to 70% and nickel will be subject to a 35% duty.
Before the decision was made, around 400 tonnes of Russian metal were already in US LME-registered warehouses, meaning this asset will no longer be available for NASAAC futures settlement.
The full set of the latest round of trade sanctions and measures now covers over 100 metals, minerals and chemicals. According to OilPrice, the LME has come under intense pressure to stop shipments of Russian aluminum through its entire global storage network, but so far management has rejected the idea. Nevertheless, US leaders have found a way to influence the recalcitrant organization, making its business, especially associated with Russian assets, unprofitable.
It’s remarkable, but the London trading floor is not giving up on this. The exchange and its participants will continue cooperation with Russian products. In London, they simply explain their desire: many American companies and consumers have long since introduced self-sanctions (without external coercion or law), so that the LME has learned to circumvent obstacles and difficulties.
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