Aluminum and nickel futures rose on Wednesday following President Biden’s announcement that the US plans to implement a new round of sanctions on Russia in response to the sudden death of opposition leader Alexey Navalny in a Russian prison.
On Tuesday, Biden told reporters at the White House about plans for a “major” sanctions package against Moscow that would be unveiled Friday, but he did not comment on targeted industries or other specifics.
According to BloombergCommodity traders have been waiting for a new round of trade restrictions on Russian metals since Britain took action in December to block British individuals and entities from trading physical metals from Russia, including aluminium, copper and nickel. Britain has hinted at a coordinated action with Western partners against Russian metals.
Aluminum prices on the London Metal Exchange rose more than 2% on Wednesday, after surging in response to Biden’s comments on Tuesday. Nickel futures also rose by almost 2%.
Li Jiahui, analyst at Shanghai Metals Market, told Bloomberg: “Prices are rising on the Biden news as investors assess the potential measures and impact,” adding: “Investors are waiting for the specific measures to land.”
Earlier on Tuesday, White House spokesman John Kirby said sanctions would be intended “to hold Russia accountable for what happened to Mr. Navalny.”
Also, US National Security Advisor Jake Sullivan said the “substantial package” of sanctions would target “several elements of Russia’s defense industrial base and sources of revenue for the Russian economy” that power Moscow’s “war machine.”
Meanwhile, the ineffectiveness of the West’s sanctions on Russia’s economy is an awakening sign that Washington’s neoconservative elites believe they can do more of the same and expect different results. This is called insanity.
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