MOSCOW, April 16. /TASS/. The new sanctions imposed by the US and the UK on the import of aluminum, nickel and copper from Russia will fuel price volatility and uncertainty in the supply chain as well as drive prices up for end consumers, a representative of Nornickel told reporters.
"Nornickel is disappointed with the decision that has been made, as it will fuel price volatility, push uncertainty in the supply chain up and increase the prices which will negatively influence end users of those metals across the world," he said. Those restrictions will increase the risk markets failing as the liquidity of metals will go down, with the cost of financing of major industrial supply chains growing, a company representative added.
"Despite the difficulties and challenges of the last few years, Nornickel remains a reliable supplier of its products and it will continue carrying out all existing contractual obligations to clients," he said.
On April 12, the UK and the US prohibited their citizens and residents from participating in global exchange transactions with Russian nickel, copper and aluminum, the company noted. As a result, metals produced in Russia after April 13, 2024, will essentially not be available for trading on the London Metal Exchange (LME) and the Chicago Mercantile Exchange.
London and Washington said in a joint statement that the restrictions did not cover the existing reserves of Russian metals in the warehouses of both exchanges, with which it will still be possible to carry out trading operations. However, the London Metal Exchange and the Chicago Mercantile Exchange will no longer buy new aluminum, copper and nickel produced by Russia.
Moreover, the US banned import of those metals, which follows a similar ban by the UK in December 2023. However, according to the US regulator, restrictions do not cover products containing those metals, which are included in new production or which have been substantially transformed outside Russia, Nornickel representative said.