The decision made by the UK and the US in mid-April to impose sanctions on aluminum, copper and nickel of Russian origin could have negative consequences for the global economy, said Vadim Petrov, a member of the Russian delegation to UNESCO and a State Secretary of the Ecological Chamber of Russia, to Izvestia.
“Aluminum, copper and nickel are invaluable to the transition to a green economy and to achieving sustainable development goals,” he notes.
These metals are critically important for the implementation of the UN climate program aimed at transitioning to green energy based on renewable sources. The new sanctions go against the “plan for a better and more sustainable future for all” adopted in 2015 by 193 UN member states.
Meanwhile, the restructuring of global supply chains for critical commodities could lead to a radical change in the landscape of the global metals market. A ban on trading in Russian metals on commodity exchanges such as the London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME) could prompt consumers to look for alternative sources of supply.
At the end of March, Russia accounted for 91% of aluminum stock, 62% of copper stock and 36% of nickel stock in LME’s warehouses.
“The development [of the market situation] will depend on many factors, including the ability of manufacturers to adapt to new conditions and changes in the global economy. This is where the voice of green consortia as key consumers should be significant,” concluded Petrov.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
