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London Metal Exchange says ready to act on Western sanctions on Russia

LME says some members may have positions subject to sanctions
LME says some members may have positions subject to sanctions   -   Copyright  Thomson Reuters 2022
By Reuters

LONDON – The London Metal Exchange (LME) is ready to ensure market stability if sanctions by Western allies impact trading of key industrial metals produced by Russia such as aluminium and nickel, the LME said on Thursday.

No action has been needed so far for LME metal brands, the exchange said in a statement.

The United States and its allies are preparing more severe sanctions after Moscow mounted a mass assault by land, sea and air in the biggest attack on a European state since World War Two.

“We have procedures and the necessary powers in place to take any action that may be required to ensure market stability in response to sanctions that impact the LME market,” the exchange said in a notice.

The LME, the world’s oldest and largest venue for the exchange of metals such as copper and zinc, in 2018 suspended from its list of approved brands aluminium produced by Russia’s Rusal after it was sanctioned by the United States.

Members of the LME at the time raised concerns about settling LME contracts with sanctioned companies. So far, no Russian producers have been hit by sanctions.

The exchange said it would communicate any action should it “consider it necessary to take any action in respect to current or further actions”.

The LME said it would continue to update a webpage with its comments about impact on LME metals from sanctions.