Geopolitical pressure prompts CME to restrict Russian aluminium

On April 14, 2024, CME Group announced that it had suspended aluminium produced in Russia from its platform starting April 13, 2024. This decision follows new sanctions imposed by the United States and Britain on Russia due to the geopolitical crisis with Ukraine.

On April 12, 2024, the US Treasury Department and the British government jointly prohibited the London Metal Exchange (LME), which has been in operation for 147 years, and the Chicago Mercantile Exchange (CME) from accepting any fresh Russian output of aluminium, copper, and nickel starting from April 13.

The CME website displayed Russian aluminium brands that may have been delisted from the warrant, a title document signifying ownership for fulfilling contracts.

The CME said, "Aluminium from these brands produced prior to April 13, 2024, will continue to be eligible for warranting and delivery against the exchange's aluminium futures contract."

"All participants must ensure their participation in delivery against the exchange's aluminium futures contract complies with local laws and regulations, including applicable economic sanctions."

On April 13, 2024, the CME informed that it maintains a policy of not revealing the source or specific brands of metal eligible or registered in its storage facilities, consistent across all its physically delivered markets. However, on April 12, a UK official stated that London anticipates any market disruptions to be temporary and mentioned consultations with counterparts in the US, along with discussions with the LME, the Bank of England, and the Financial Conduct Authority, aimed at mitigating potential impacts.

The suspension announced by the US and Britain came after the markets had closed for the weekend.