U.S. & UK Collaborate to Curb Russian Metal Imports

In a joint effort to disrupt Russia's earnings from the export of metals, the United States Department of the Treasury, in collaboration with the United Kingdom, has introduced two significant measures aimed at limiting the flow of Russian-origin aluminum, copper, and nickel.

The new prohibitions, announced today, entail restrictions on both the importation of Russian-origin metals into the United States and the utilization of Russian-origin metals on global metal exchanges and in over-the-counter derivatives trading.

Treasury Secretary Janet L. Yellen emphasized the strategic nature of these actions, stating, "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." Secretary Yellen reaffirmed the commitment to reduce Russia's earnings, thereby safeguarding partners and allies from adverse consequences.

Echoing this sentiment, Jeremy Hunt, the United Kingdom Chancellor of the Exchequer, underscored the importance of international cooperation in combating Russian aggression. "Disabling Putin’s capacity to wage his illegal war in Ukraine is better achieved when we act alongside our allies," Hunt stated, praising Britain's leadership in the endeavor. He further noted that the joint ban on Russian metals would impede the Kremlin's ability to finance its military activities.

To enforce this policy, Treasury has issued determinations under Executive Orders 14068 and 14071. The former prohibits the importation of Russian-origin aluminum, copper, and nickel into the United States, effective from April 13, 2024. The latter prohibits the exportation, reexportation, sale, or supply of services related to Russian-produced metals on global metal exchanges and in derivative contracts.

As a result of these coordinated actions, major metal exchanges such as the London Metal Exchange (LME) and Chicago Mercantile Exchange (CME) are barred from accepting new Russian-produced aluminum, copper, and nickel. Metal exchanges play a pivotal role in the global trading of industrial metals, and this collective intervention aims to deprive Russia and its metals producers of a vital revenue stream.

Additionally, Deputy Attorney General Lisa O. Monaco and many others have recently remarked on the evolving nature of sanctions enforcement, likening it to the growth trajectory of the Foreign Corrupt Practices Act (FCPA). "The growth of sanctions enforcement follows the path that the FCPA traveled before it," Monaco stated in 2022. She highlighted that both FCPA and sanctions enforcement are becoming increasingly relevant across various industries and are transitioning from solely U.S.-focused actions to a more multilateral enforcement regime. Monaco emphasized that companies are rewarded for proactively identifying misconduct within their organizations and voluntarily disclosing it to the authorities.

The collaborative efforts of the United States and the United Kingdom signify a unified stance against Russian aggression and underscore the importance of international solidarity in addressing geopolitical challenges.

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