Ukraine conflict—LME considers suspending Russian metal from warehouses globally

Article summary

The London Metal Exchange (LME) has published a discussion paper to gather views on whether to accept Russian metal in 2023, and what role LME should play in this scenario. LME has stated that to date, financial sanctions have not directly targeted Russian metals companies, but that individuals associated with Russian metal, as well as economic and trade sanctions, have had sanctions imposed. LME fears that because consumers might refuse delivery of Russian metal, a significant accumulation of Russian metal could arise in LME warehouses. This would impact pricing and might lead to the cancellations of orders. The LME thus proposes either to maintain the current position, introduce thresholds for Russian metal or suspend the warranting of Russian metal in LME warehouses globally.