What's happened
The US and UK have expanded the ban on Russian metals imports, including aluminum, copper, and nickel, to target a significant revenue source for Russia following its invasion of Ukraine. The ban prohibits the trading of new Russian-origin metals on global metal exchanges and derivatives trading, aiming to reduce Russia's earnings and protect allies from spillover effects.
Why it matters
The ban on Russian metals by the US and UK is significant as it disrupts a key revenue stream for Russia, limiting its ability to fund the war in Ukraine. This action aims to reduce Russia's earnings from metals, which have amounted to $40 billion in the past two years, and prevent further cash flow into the war machine.
What the papers say
The US and UK have jointly widened the ban on Russian metals imports to disrupt a crucial revenue source for Russia. The US Treasury Department stated that the action prohibits the import of Russian-origin aluminum, copper, and nickel, aiming to reduce Russia's earnings and protect allies from spillover effects. The UK's Chancellor of the Exchequer emphasized the importance of acting alongside allies to prevent the Kremlin from funding its war machine. The ban on new Russian metals is part of a broader effort to limit Russia's revenues from metals and target its earnings from the ongoing conflict in Ukraine.
How we got here
The ban on Russian metals follows the Group of Seven nations' commitment to reducing Russia's revenues from metals due to its prolonged invasion of Ukraine. Russia is a major exporter of metals like aluminum, steel, and titanium, with metals earning the nation $40 billion in the past two years. The US and EU have previously imposed sanctions on Russia's financial institutions and elite individuals in response to the conflict.
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