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This page sets out the LME’s understanding of how recent US, UK and EU sanctions against Russia and disputed Ukrainian areas may affect the LME’s market.

Latest information is included in red text to ensure easy identification.

1. Background
2. Sanctions and tariffs relating to LME-listed brands:

i. US
ii. EU
iii. UK
iv. Designated individuals or entities

3. Counterparties
4. Other information

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1. Background

  • The LME’s priority in any challenging geopolitical situation is to ensure that an orderly market is maintained, which includes providing a reliable price reflective of global market conditions.
  • The LME and LME Clear have robust 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 LME maintains a list of global metals brands, and the metal produced by these brands can be placed on warrant and stored at an LME-listed warehouse. A warrant is used to settle a relevant LME contract. Due to the global nature of the LME brand list, continuity of supply can still be achieved even in the event of some brands being sanctioned due to their location.
  • The LME also notes that there have been sanctions introduced in relation to Belarus, however the LME does not have any Belarussian members or brands. Further, the LME does not believe that any members have open positions, directly or indirectly, with Belarussian individuals or entities which have become subject to sanctions.
  • The LME and LME Clear continue to closely monitor the introduction of additional sanctions that may impact the LME market and we will update this webpage accordingly.

2. Sanctions and tariffs relating to LME-listed brands

3. Counterparties

Since 22 February 2022, the US, EU and UK have implemented widespread sanctions against Russian entities and individuals. Neither the LME nor LME Clear have any Russian entities as members. As of February 2022, the LME understood that a small number of members may have had open positions, directly or indirectly, with Russian individuals or entities which became subject to sanctions. It is noted that as sanctions against Russian individuals and entities continue, members must ensure that they take immediate action to achieve sanctions compliance, including ensuring that no payments are made to any sanctioned person, and that it is a member’s responsibility to undertake their own checks against relevant sanctions lists. Any members who have a position with or for the benefit of any sanctioned entity should contact the LME without delay to confirm the positions they hold and confirm the action they are taking. A number of sanctions require that funds or economic resources owned, held or controlled (directly or indirectly) by a sanctioned person or entity are frozen and there is also prohibitions on making funds or economic resources available directly or indirectly to or for the benefit of a designated person or entity. Accordingly, if a member is holding a position with or on behalf of a designated person or entity, any payments must be frozen, unless the member obtains a specific licence. The member will need to consider what other action needs to be taken in respect of the position, in accordance with the relevant terms of business.

Members are reminded of their contractual obligations under the LME and LME Clear Rules to comply with all relevant sanctions requirements and to ensure that any business conducted by or through them does not cause the LME or LME Clear to be in breach of any relevant sanctions requirements.