OFAC Announces New Import Ban on Russian Aluminum, Copper, and Nickel
The US issued a new import/export ban on Russian aluminum, copper, and nickel produced after April 12, 2024. Read on to learn more.
In an issued determination, the U.S Customs and Border Protection (CBP) has announced a new metal prohibition, banning the import of aluminium, copper, and nickel originating from the Russian Federation.
On April 12, 2024, the US Department of the Treasury's Office of Foreign Assets Control (OFAC) made significant amendments to Executive Order 14068, targeting key sectors of the Russian economy.
The revisions specifically include aluminum, copper, and nickel originating from the Russian Federation and produced after April 12, 2024. However, metals of Russian origin produced before April 13, 2024, are exempt from the new sanctions.
Under the updated determination, the importation and entry of aluminum, copper, and nickel from Russia into the United States are now prohibited, including importation for admission into foreign trade zones within the country. This prohibition stands unless provided by law or authorized by OFAC through licensing or other means.
In a further escalation of measures, OFAC has expanded its metal prohibition to include the exportation, re-exportation, sale, or supply of specific services to individuals or entities located in Russia. These restrictions, which apply to U.S. persons regardless of their location, target services related to aluminum, copper, or nickel of Russian origin.
In a press release, the US Department of Treasury stated that, in collaboration with the United Kingdom, this metal prohibition was updated to disrupt Russia’s revenue earnings from exporting metals.
Moreover, the US and UK have banned metal exchanges such as the London Metal Exchange (LME) and Chicago Mercantile Exchange (CME) from accepting Russia's newly produced aluminum, copper, and nickel. This will further deprive Russia and its metal producers of a significant source of revenue.
Tensions between the United States and Russia are continuing to escalate, with the US implementing more bans as a response to Russia’s war on Ukraine. These measures are expected to impact global markets, especially in the metals industry, as businesses and stakeholders try to navigate the implications of restricted trade.
Are you involved in the import or export of Russian aluminum, copper, or nickel? Please reach out to one of our trade professionals to discuss how this ban could affect your business operations.