LME monitors situation in Russia and Ukraine and resulting sanctions
The London Metal Exchange (LME), an HKEX company, has issued a statement regarding Russian sanctions.
The LME says that it has been monitoring the situation in Russia and Ukraine and resulting sanctions closely. While no action has been required thus far in respect of LME brands, members or clients, the LME has set out its consideration of the sanctions made to date:
“The LME’s priority in any challenging geopolitical situation is to ensure that an orderly market is maintained, which includes providing a reliable price reflective of global market conditions.
We have robust procedures and the necessary powers in place to take any action that may be required to ensure market stability in response to sanctions that impact the LME market.
The LME maintains a list of global metals brands, and the metal produced by these brands can be placed on warrant and stored at an LME registered warehouse. A warrant is used to settle a relevant LME contract. In the event that any brand is subject to sanctions, we are in a position to respond swiftly and appropriately to take action in respect of the brand. Such action might include suspending the brand, or suspending production from a certain date. Due to the global nature of the LME brand list, continuity of supply can still be achieved even in the event of some brands being sanctioned due to their location.
We are also ready to take the appropriate action should any individual or entity subject to sanctions be active on the LME market.
We continue to monitor the developing situation closely”.