The European Union is considering the possibility of banning imports of copper and platinum from Russia, as part of a new package of sanctions against Moscow in response to the war in Ukraine.
According to Bloomberg, which cites people familiar with the matter, the measures could also be extended to other precious metals, such as iridium and rhodium. To come into effect, the sanctions must be supported by all EU member states, and the community bloc intends to adopt the new package even this month. Spokespersons for the European Commission responsible for the sanctions regime declined to comment on the information.
The ban is being considered in a context of already tight markets for the targeted metals. Copper prices have reached record levels this year, due to strong demand and a limited global supply of ore. Platinum is also in deficit, while metals of Russian origin have been gradually removed from major international trading centers.
The UK has imposed sanctions that prohibit the trading or delivery of Russian-origin copper produced after April 13, 2024 on the London Metal Exchange. At the same time, the London Platinum and Palladium Market has excluded Russian refineries from its delivery list since 2022. These decisions have reduced demand, including from industrial consumers, who can no longer use Russian metal for financing. In the case of copper, European buyers have largely moved away, especially after several major Russian producers were sanctioned.
Norilsk Nickel, the main target
Even so, some of these metals continue to reach Western markets, although the majority of volumes have been redirected to Asia. If adopted, the new restrictions would primarily affect MMC Norilsk Nickel PJSC, the largest mining group in Russia, which has not been sanctioned so far due to its essential role in global industries.
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