FILE PHOTO: The offices where the London Metal Exchange is headquartered are seen in the City of London
The U.S. and Britain earlier this month banned the LME from accepting new Russian production of aluminium, copper and nickel to restrict Russian revenues from the export of these metals. For metal produced before April 13, LME rules differentiate between Type 1 and Type 2 Russian warrants which created an opportunity to tie up metal in lucrative "rent deals". Warrants are title documents conferring ownership.Type 1 contracts allow UK LME members and their clients to freely trade Russian metal warrants in existence before April 13.
"However, this does not change the fact that ... the warrant may still be cancelled and loaded-out by UK Persons because it was on warrant as at the end of 12 April 2024."