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Alcoa (NYSE: AA) +5.9% and Century Aluminum (CENX) +4.8% post-market Friday, after the US and UK announced new restrictions on trade in Russian aluminium, copper and nickel in a bid to undermine Vladimir Putin’s ability to finance his war machine.
The rules prohibit him from being a Londoner The Metal Exchange and the Chicago Mercantile Exchange do not accept new supplies of Russian-produced aluminum, copper and nickel, while the United States bans Russian imports of all three metals.
The US and UK will exempt existing stockpiles of Russian metal on the LME and Comex so that metals can still be traded and withdrawn, in a bid to minimize risk to market stability.
While Western sanctions have targeted oil, gold and numerous Russian officials and companies, Russia’s largest metals industrial groups have been able to continue selling their products without being affected by any blanket restrictions.
Russia is a major producer of the three metals, accounting for about 6% of global production of nickel, 5% of aluminum and 4% of copper, but Russian metal accounted for 36% of nickel in LME warehouses, 62 % of copper and copper. 91% of aluminium, according to the latest monthly data.