US bans import of Russian metals in larger action involving UK, LME, CME

The US issued a ban on the import of Russian-origin aluminum, copper and nickel produced on or after April 13, part of a larger trade action in partnership with the UK that will also see the trade of these metals blocked on the London Metal Exchange and Chicago Mercantile Exchange.

"Our new prohibitions on key metals, in coordination with our partners in the United Kingdom, will continue to target the revenue Russia can earn to continue its brutal war against Ukraine," US Treasury Secretary Janet Yellen said in a statement late April 12. "By taking this action in a targeted and responsible manner, we will reduce Russia's earnings while protecting our partners and allies from unwanted spillover effects."

The action applies "except to the extent provided by law, or unless licensed or otherwise authorized by the Office of Foreign Assets Control," according to the statement.

The efforts from the US and the UK represent the latest action taken in retaliation to Russia's continued war with Ukraine.

The US has already taken action to limit its metals trade with Russia. In 2022, the US revoked permanent normal trade relations from Russia, thus spiking duties on dozens of import categories including metals. For instance, duties increased to 18.5% from 2.6% for unwrought aluminum and 6.6 cents/kg from 0% for unwrought nickel.

In 2023, the US applied an additional 200% tariff of aluminum imports from Russia.

Russia was a major supplier of aluminum to the US in past years, but shipments saw heavy declines even before the onset of the Russia-Ukraine war. Since 2010, US annual aluminum imports from Russia peaked at over 770,000 mt in 2017 but plunged to about 400,000 mt in 2018 and about 200,000 mt in 2022, according to US Commerce Department data.

Similarly, US import of nickel products from Russia tapered off earlier in the previous decade. By 2023, total nickel metal shipments from Russia under Harmonized Tariff Schedule code 75 totaled only about 900 mt, and Russia was not among the top 15 nickel exporters to the US.

However, Russia has not been a significant source of US copper imports since 2011, with annual shipments exceeding 500 mt only twice since then.