The U.S. Department of the Treasury enacted directives on Friday, April 12, 2024 that prohibit the import of Russian-origin aluminum, copper, and nickel into the U.S. These actions also limit the use of these Russian-origin metals on global metal exchanges and over-the-counter derivatives trading. This move supports the G7 Leaders’ Statement to reduce Russia’s revenues from metals. The United Kingdom (UK) issued similar bans on Russian-origin metals.
“Our new prohibitions on key metals, in coordination with our partners in the United Kingdom, will continue to target the revenue Russia can earn to continue its brutal war against Ukraine. By taking this action in a targeted and responsible manner, we will reduce Russia’s earnings while protecting our partners and allies from unwanted spillover effects.”
Janet L. Yellen | U.S. Secretary of the Treasury
DETERMINATIONS ON RUSSIAN-ORIGIN METALS
The U.S. Treasury published Executive Orders 14071 and 14069 on April 12th. These determinations impose restrictions on certain activities related to metals acquisition services and the importation of aluminum, copper, and nickel from Russia into the United States, including:
Determination Pursuant to Section 1(A)(Ii) of Executive Order 14071 – Pursuant to Executive Order (E.O.) 14071 certain activities are banned: Exporting, reexporting, selling, or providing, directly or indirectly, from the United States or by any U.S. person, regardless of location, any Covered Metals Acquisition Services to individuals in the Russian Federation. It is important to mention that this ruling does not apply to aluminum, copper, or nickel manufactured before April 13th.
Determination Pursuant to Section 1(A)(I)(A) of Executive Order 14068: The entry of aluminum, copper, and nickel from the Russian Federation into the United States, including admission into a foreign trade zone within the U.S., is forbidden, except as permitted by law or with the authorization of the Office of Foreign Assets Control (OFAC).
IMPACT ON U.S. METALS IMPORTERS
An authorization from the Treasury Department permits individuals in the U.S. to make payments for taxes, fees, import duties, and other transactions that may otherwise be restricted under the bans. These transactions must be necessary for the daily operations of U.S. individuals or entities in Russia. The authorization is effective until July 11, 2024. Following the Treasury’s announcement, U.S. Customs and Border Protection (CBP) sent out a CSMS message detailing the new restrictions. It mentioned that products imported after April 12, 2024, will require thorough documentation for admission.
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