The London Metal Exchange (LME) will continue to trade metals from Russian producers in its system, Reuters reports.
This is to prevent the already tight supply market from coming under further pressure, as Russia is a major producer of many important commodities such as nickel, aluminum, and copper. Base metal prices have risen to new heights in recent months, with the price of nickel, for example, exceeding $100,000 per ton for a short time.
The list of LME-approved producers includes Norilsk Nickel, one of the world’s largest nickel producers, and Rusal, one of the world’s largest aluminum producers.
Western countries, including the U.S., the U.K., and the EU, have imposed several sanctions on Russia, including the exclusion of some Russian banks from the SWIFT system. The U.S. and the U.K. recently expanded sanctions and imposed an import ban on Russian oil, gas, and coal supplies. The EU has been unable to follow the sanctions because of its dependence on Russian energy products.