United States and United Kingdom issue prohibitions on metals from Russia
Prohibit import of Russian-origin aluminum, copper, and nickel into the United States
Prohibit import of Russian-origin aluminum, copper, and nickel into the United States
The U.S. Department of the Treasury, in coordination with the United Kingdom, issued two new prohibitions to disrupt the revenue that Russia earns from its export of aluminum, copper, and nickel.
The Treasury release (April 12, 2024) explains that this new action aims to prohibit the import of Russian-origin aluminum, copper, and nickel into the United States, and limits the use of Russian-origin aluminum, copper, and nickel on global metal exchanges and in over-the-counter derivatives trading.
To implement this policy, Treasury has issued a new determination prohibiting the importation into the United States of aluminum, copper, and nickel of Russian origin produced on or after April 13, 2024. Treasury also issued a complementary determination under that prohibits the exportation, reexportation, sale, or supply to any person located in Russia of (1) warranting services for the metals produced on or after April 13, 2024, on a global metal exchange, and (2) services to acquire the metals produced on or after April 13, 2024, as part of the physical settlement of a derivative contract.
As a result, metal exchanges will be prohibited from accepting new aluminum, copper, and nickel produced by Russia.
Treasury’s Office of Foreign Assets Control (OFAC) issued “frequently asked questions” (FAQs) (April 12, 2024) and Russia-related General License 13I.
For more information, contact a professional with KPMG Trade & Customs services:
Doug Zuvich |
John L. McLoughlin |
Andy Siciliano |
Steve Brotherton |
Luis (Lou) Abad |
Irina Vaysfeld |
Amie Ahanchian |
Christopher Young |
Gisele Belotto |
George Zaharatos |
Andy Doornaert |
Jessica Libby Principal E: jlibby@kpmg.com |
| John Anderson Managing Director E: johneanderson@kpmg.com |
Jenna Leigh Glass Managing Director E: jennaleighglass@kpmg.com |
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.