Copper cathodes produced by Nornickel. (Image courtesy of Nornickel).
The European Union is considering to ban Russian imports of several platinum group metals and copper as part of new sanctions targeting Moscow for its war against Ukraine, according to people familiar with the matter.
The restrictions, if backed by member states, may cover iridium, rhodium, platinum and copper, according to the people who asked not to be identified because the information is not yet public. EU sanctions require the backing of all EU member states, and the bloc is aiming to adopt the new package this month.
Spokespeople for the European Commission, which handles sanctions actions for the EU, declined to comment.
Tight markets
The ban is planned amid tight markets for the targeted metals. Copper prices have hit record highs this year amid strong demand and constrained mine supply worldwide. Platinum is also seen in deficit.
Russian metals have steadily been pushed out of main trading hubs. UK sanctions bar Russian-origin copper produced after April 13, 2024 from being traded or delivered on the London Metal Exchange, while the London Platinum and Palladium Market removed Russian refiners from its delivery list in 2022.
The steps have curtailed demand even among industrial consumers, who can no longer be able to use Russian metal for funding. In copper, European buyers have largely turned away altogether as several of Russia’s biggest producers have also been sanctioned.
Still, many of those metals enter Western markets, even as the bulk of volumes has been redirected to Asia.
If adopted, the new restrictions would mainly target MMC Norilsk Nickel PJSC, Russia’s largest mining company, which has not been sanctioned due to its important role in global industries. The miner accounts for about 40% of global palladium used in automotive catalysts, which the EU is not targeting in the new package. It is also Russia’s largest producer of platinum, iridium, rhodium, nickel and copper.
Separately, the EU is also considering a proposal to replace its price cap on Russian oil with a ban on maritime services, Bloomberg previously reported.
(By Alberto Nardelli)