London Metal Exchange Suspends Placing Russian Metals in Warehouses Due to Duties Increase

MOSCOW (Sputnik) - London Metal Exchange (LME) announced on Friday it temporarily halts the placement of some metals from Russia, including copper and aluminum, in its warehouses amid the recent increase in duties on Russian imports.

On Monday, the United Kingdom has introduced additional 35% duties on a number of goods originating in Russia and Belarus, including metals, such as aluminum, lead and copper as well as iron and steel.

"As a result of the UK government's decision to place 35% additional duties on imports of Russian copper, lead, primary aluminium and aluminium alloy, we have announced an immediate suspension (see notice 22/097) on placing Russian brands on warrant in LME-listed UK warehouses unless exported from Russia prior to 25 March 2022," the statement read.

The company explained that even though at the moment there are no Russian metals on the warrant in its warehouses, the additional duties mean that any deliveries of Russian metals with subsequent shipping across the UK or elsewhere would require significant costs, which thereby may create price volatilities and "disorderly market conditions."