LONDON (Reuters) – CME Group has suspended from its platform aluminium produced in Russia from April 13, the exchange said on Sunday, after the United States and Britain imposed new sanctions on Moscow for its invasion of Ukraine.
The U.S. Treasury Department and the British government on Friday banned the 147-year old LME and the Chicago Mercantile Exchange (CME) from accepting new Russian production of aluminum, copper and nickel produced from April 13.
On its website the CME listed Russian aluminium brands that could no longer be on warrant – a title document conferring ownership – for delivery against its contracts.
“Aluminum from these brands produced prior to April 13, 2024, will continue to be eligible for warranting and delivery against the exchange’s aluminum futures contract,” the CME said.
“All participants must ensure their participation in delivery against the exchange’s aluminum futures contract complies with local laws and regulations, including applicable economic sanctions.”
The CME told Reuters on Saturday that it does not disclose the origin or brands of the eligible or registered metal it has in store and said this was consistent across all of its physically delivered markets.
On Friday, a UK official said London expected any market disruption to be short-lived and that the government had consulted with colleagues in the U.S. as well as with the LME, the Bank of England and the Financial Conduct Authority to minimise any impact.
The announcement of the ban by the U.S. and Britain was made after trading was closed for the weekend.
(Reporting by Pratima Desai; Editing by David Holmes)
