Contracts on aluminium have risen sharply on Friday on the London metal exchange due to concerns that the introduction of sanctions against “Rusala” it will disrupt the normal supply of metal to the world market.
In the course of trading in futures prices rose by 2.4%, then the growth was limited to 1%, the contracts were trading at $2009 per ton.
Before the announcement of the sanctions the price of the metal declined due to the imposition of U.S. duties on imports of aluminum.
London Metal Exchange, meanwhile, said Friday that while it will not prohibit auction of metal produced by the “RUSAL”.
As they say in the message exchange, each of the “stakeholder exchange must decide whether the use of the goods of individual producers, given the legal and regulatory factors”.
A number of traders, according to The Financial Times, expressed concern that now they will not be able to trade produced “RUSAL” metal. The Russian company accounts for about 7% of world production.
The U.S. Treasury on Friday announced that, after consultation with the state Department, the us administration imposed sanctions against seven Russian businessmen, 12 companies, 17 government officials of the Russian Federation and against “Rosoboronexport” and the associated Bank. The press release noted that these sanctions are imposed according to the results released in January 2018, “the Kremlin report”, which, in turn, is the implementation adopted in the US in early August, 2017 law “On counteraction to opponents of the United States through sanctions” (Countering America’s Adversaries Through Sanctions Act; CAATSA). In a statement the head of Finance Stephen Mnuchin stated that the sanctions affect a number of persons that are directly benefited by the activities of the authorities of the Russian Federation for their own purposes, but also are themselves involved in “the promotion of the Russian harmful activity.”
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