The London Metal Exchange (LME) has announced plans to prevent the manipulation of its rules regarding Russian aluminium, which were introduced in response to international sanctions. The exchange aims to ensure that its regulations are not exploited for personal gain.
In recent months, concerns have been raised that some market participants may be taking advantage of the LME’s rules, which allow Russian aluminium to be traded on the exchange as long as it meets certain conditions. These conditions include ensuring that the metal is not owned or controlled by sanctioned entities or individuals.
To address these concerns, the LME has proposed changes to its rules, which are expected to come into effect later this year. The revised rules will introduce stricter requirements for verifying the origin and ownership of Russian aluminium, making it more difficult for traders to circumvent the sanctions.
The LME’s move is seen as a response to growing concerns about the integrity of the global aluminium market. The exchange has faced criticism for allowing Russian aluminium to continue trading on its platform, despite international sanctions imposed on Russia following its invasion of Ukraine.
Industry insiders welcome the LME’s decision, stating that it will help to maintain confidence in the market and prevent abuse of the sanctions-based rule. The changes are also expected to bring greater transparency to the trade of Russian aluminium, making it easier to identify and prevent any potential breaches of sanctions.
The LME’s proposal is currently open for public consultation, with feedback expected from market participants and other stakeholders. Once finalized, the new rules are expected to take effect later this year, providing a more robust framework for trading Russian aluminium on the exchange.
