The London Metal Exchange (LME) will maintain temporary restrictions on the sale of aluminum by Rusal until procedures for determining the metal’s conformity to the US Treasury Department’s Office of Foreign Assets Control (OFAC) General License 14 (GL-14) are determined, TASS news agency reports, citing the press representative of the Exchange.
"The LME has analyzed the implications of OFAC General License 14 (GL-14) for Rusal brand metal. The LME understands that there are concerns in the market about how it could be established that metal was GL-14 compliant. Unless or until a process could be implemented that would give sufficient comfort for the market as to GL-14 compliance, the temporary conditional suspension will remain in effect," said the LME representative.
On Friday, Reuters said that Glencore and Rusal had asked the exchange to remove restrictions on the sale of Rusal-branded Aluminum, since the US Treasury Department had granted a respite to the American business in curtailing its relations with the Russian company. Up to 80% of the proceeds of Rusal are provided by aluminum exports.
LME has suspended operations of Rusal products since April 17.
US authorities imposed sanctions against businessman Oleg Deripaska, including on Rusal, on April 6. OFAC originally demanded that investors cease any business relations with Rusal by June; however, OFAC has since extended the deadline to October 23.