Western traders and banks continue transactions with metals from the Russian Federation – Kommersant

Several Western traders and banks, including Citigroup and Trafigura Group, are increasingly willing to enter into transactions with metals from Russia, reports Bloomberg with reference to sources.

The head of one of the trading houses told the agency that in the metals trade, transactions with supplies from Russia remain one of the few on which one can make a profit. Bloomberg clarifies that Western countries did not ban trade in Russian metals. However, after the outbreak of the military conflict in Ukraine, many buyers refused supplies from Russia, so demand increased sharply in the Asian market. In addition, the agency reports that metal producers competing with the Russian Federation unsuccessfully lobbied for a ban on the presence of Russian products on the London Metal Exchange (LME).

Bloomberg interlocutors familiar with the situation on the market say that after 20 months after the outbreak of hostilities, the uncertainty associated with the purchase of metals from the Russian Federation has disappeared. Thus, large trader Trafigura is looking for new deals with metals from Russia, who is trying to beat its competitor, Glencore. It, in turn, remains the largest buyer of Russian aluminum.

After the outbreak of the military conflict, Glencore announced that it would refuse to conduct business within Russia. At the same time, Bloomberg, citing trade data, claims that the company also continues to purchase copper from the Russian Federation and supply alumina to the country. A company representative told the agency that all transactions with Russia are part of contracts concluded even before the start of the Russian military operation in Ukraine.

According to the agency, financial companies are conducting transactions with Russian metals on the LSE. Among them are Citigroup and Squarepoint Capital. In particular, they buy large volumes of Russian aluminum, which is stored in stock exchange warehouses. According to Bloomberg, Squarepoint bought 50 thousand tons of aluminum in October, most of which came from Russia.

Sources told Bloomberg that Trafigura has entered into an urgent agreement to purchase more than 100 thousand tons of copper from Norilsk Nickel, and is also purchasing significant volumes of nickel from the company. In addition, the trader entered into an agreement to purchase almost 200 thousand tons of aluminum from Rusal this year. The agency’s interlocutors said that Trafigura is also bidding for a long-term contract to purchase zinc ore, which will be mined at the Ozerny mine in Siberia.

A representative of IXM, the third-largest metals trader after Glencore and Trafigura, told Bloomberg that the company does not do business within Russia, but continues to buy Russian metal outside the Russian Federation and will continue to do so as long as its competitors do so.

About what restrictions have been introduced against Russian metals by Western countries – in the publication “Kommersant” “Russian copper is covered with sanctions”.