Russian metals sanctions: overview
Updated 1 September 2024
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This publication is available at https://www.gov.uk/government/publications/notice-to-importers-2953-russia-import-sanctions/russian-metals-sanctions-overview
This notice provides an overview of the measures related to metals which originate from or are located in Russia. If you are unclear about your obligations or responsibilities, you are advised to seek independent legal advice.
This notice should be read alongside the Notice to Importers 2953: Russia import sanctions and statutory guidance. This notice contains information and guidance about the Russian metals sanctions but it is not statutory guidance.
In response to Russia’s invasion of Ukraine, the UK government has imposed a range of sanction measures, including trade, financial, transport and other sanctions, under the Russia (Sanctions) (EU Exit) Regulations 2019 (“the Russia Regulations”). The sanctions are aimed at encouraging Russia to cease actions which destabilise Ukraine, or undermine or threaten the territorial integrity, sovereignty, or independence of Ukraine and at promoting the payment of compensation by Russia for damage, loss or injury suffered by Ukraine on or after 24 February 2022 as a result of Russia’s invasion of Ukraine. The Russia (Sanctions (EU Exit) (Amendment) (No. 4) Regulations 2023 amended the Russia Regulations, introducing further measures.
Regulations on Russian metals
In May 2023, at the G7 Leaders’ Summit, the Prime Minister committed to introducing new sanctions on further metal products. In December 2023, the Russia Regulations, as amended, introduced a prohibition on the import, acquisition, and supply and delivery, directly or indirectly, of certain metals, as set out in regulations 46IG, 46IH and 46II. Regulation 46IF defines metals as anything specified in Schedule 3BA.
Exceptions and licences
Read guidance on metals sanctions.
Part 7 of the Russia Regulations sets out exceptions to some of the prohibitions which apply within certain defined circumstances. An exception applies automatically and does not require you to obtain a licence issued in accordance with the Russia Regulations. A Trade Licence has been issued authorising certain activities relating to the acquisition of metals sanctioned under the Russia Regulations (see below).
The exceptions specified in the Russia Regulations relating to metals include those listed below. There are also some scenarios provided as examples of when these exceptions may apply (where Country X is a country that is not the UK, Isle of Man, or Russia).
Amendment of regulation 60G
Regulation 60G provides an exception in relation to certain goods consigned from Russia.
This amendment permits the import of metals which are consigned from or originate in Russia, provided that they are consigned from Russia before 15 December 2023 and imported into the UK before 14 January 2024.
Scenario 1
A metal of Russian origin which is being transported by land left Russia on 12 December 2023 and completed all applicable export formalities on that date. The import into the UK of this metal before 14 January 2024 is permitted.
Amendment of regulation 60GA
Regulation 60GA provides an exception in respect of the acquisition of iron and steel products and metals.
This amendment permits the acquisition of metals of Russian origin that are located in the UK or the Isle of Man, having been lawfully imported there.
Scenario 2
A metal of Russian origin that is located in the UK, having been lawfully imported there on 13 December 2023. The acquisition of this metal would not be prohibited under the Russia Regulations.
Regulation 60GAA
Regulation 60GAA provides an exception in respect of iron and steel products, relevant processed iron or steel products and metals exported from Russia before the relevant day.
This exception permits the import of metals which are consigned from Russia or originate in Russia that were exported from Russia before 15 December 2023, provided that they are not to be released for free circulation in the UK or the Isle of Man.
Scenario 3
A metal of Russian origin was exported from Russia on 10th December 2023 to Country X. These products are imported into the UK on 1 February 2024. These products may be held in customs bonded warehouses but may not enter into free circulation in the UK or the Isle of Man. The import in this example would not be prohibited under the Russia Regulations.
Trade Licence for acquisition of metals
On 13 December 2023, a Trade Licence for acquisition of metals was issued to allow the persons specified in the Licence to acquire a warrant (relating to Russian metal located in a third country) on a global metal exchange, subject to certain conditions.
The Trade Licence for acquisition of metals has been amended with effect from 23:59 on 12 April 2024.
Amendment to existing Trade Licence from 23:59 on 12 April 2024
The Trade Licence has been amended to:
- prevent UK persons (and non-UK persons in the UK) from acquiring, on a global metal exchange, a warrant relating to Russian metal that was produced after 23:59 on 12 April 2024
- allow UK persons (and non-UK persons in the UK) to take physical delivery, outside the UK, of metals that were under warrant on a global metal exchange at that time
If you are unclear about your obligations or responsibilities, you are advised to seek independent legal advice.
For metals already on warrant at 23:59 on 12 April 2024
- trade in the warrants for these metals may continue on global metal exchanges
- these metals can be taken off warrant
- once taken off warrant, these metals can be moved and taken delivery of outside the UK
- once taken off warrant, these metals can subsequently be re-warranted on a global metal exchange
- these metals remain banned for import into the UK
For metals not on warrant at 23:59 on 12 April 2024
- If the metal was produced before 23:59 on 12 April 2024, it may be warranted and placed on a global metal exchange.
- However, where the metal was not already on warrant at 23:59 on 12 April 2024, any warrant in relation to that metal cannot be cancelled or withdrawn by a UK person, nor anyone located in the UK, in order to take physical delivery of the metal. A UK person and anyone located in the UK is also prevented from changing the location of the metal.
- If the metal was produced after 23:59 on 12 April 2024, it cannot be warranted nor placed on a global metal exchange.
The condition in the Trade Licence that metal was produced before 23:59 on 12 April 2024 will be met:
- where the warrant being acquired was issued before that time
- where the date of production of the metal being before 23:59 on 12 April 2024 can be demonstrated through a Certificate of Analysis aligning with the physical metal (for example, the date of production is specified on the Certificate of Analysis, or the Certificate of Analysis was issued before 23:59 on 12 April 2024, or the date of inspection of the metal for the purposes of issuing the Certificate of Analysis (as specified therein) is before 23:59 on 12 April 2024), save where the person knows or has reasonable cause to suspect that the metal was produced after 23:59 on 12 April 2024
- where the date of production of the metal being before 23:59 on 12 April 2024 can be demonstrated through other equivalent evidence (save where the person knows or has reasonable cause to suspect that the metal was produced after 23:59 on 12 April 2024)
This means that the relevant enforcement body may take enforcement action in relation to a breach of regulation 46IH of the Russia Regulations in the event they are satisfied that the person who acquired the warrant knew, or had reasonable cause to suspect, that the metal was produced after 23:59 on 12 April 2024.
The Trade Licence automatically applies to the persons who are covered by it (that is, there are no requirements to apply for the Licence in order to rely on it).
Scenario 4
A metal of Russian origin is exported from Russia on 18 January 2024 and held in a warehouse in Country X. This metal is put on warrant on a global metal exchange on 23 February 2024. A person specified in paragraph 6 of the Trade Licence then wishes to acquire a warrant relating to that metal on 15 April 2024. Under the Trade Licence, specified persons are permitted to acquire a warrant relating to that metal on a global metal exchange (for example, the London Metal Exchange). There is no restriction on a person further trading that warrant on the exchange. Under the Trade Licence, specified persons are also permitted to take that metal off-warrant to take delivery of that metal in a third country and change its location. The metal remains banned for import into the UK.
Scenario 5
A metal of Russian origin is exported from Russia on 25 January 2024 and held in a warehouse in Country X. This metal is put on warrant on a global metal exchange on 20 April 2024 (since the Certificate of Analysis evidences that the date of production of the metal was before 23.59 on 12 April 2024). A person specified in the Trade Licence then wishes to acquire a warrant relating to that metal on 21 April 2024. Under the Trade Licence, specified persons are permitted to acquire a warrant relating to that metal on a global metal exchange (for example, the London Metal Exchange). Such persons may also further trade that warrant on the exchange. However, as the metal was not under warrant at 23:59 on 12 April 2024, such persons cannot use the Trade Licence to cancel the warrant to take delivery of that metal. Such persons are only able to cancel or withdraw the warrant from the global metal exchange if they are doing so on behalf on a non-UK person outside the UK.
Scenario 6
A metal of Russian origin is produced in Russia on 1 May 2024. UK persons (and non-UK persons in the UK) cannot acquire this metal on a global metal exchange.
Scenario 7
A metal of Russian origin is exported from Russia on 23 December 2023 and held in a warehouse in Country X. The metal is put on warrant on a global metal exchange on 10 January 2024. A person specified in the Trade Licence acquires a warrant relating to that metal on 10 April 2024. That person then cancels the warrant on 15 April 2024 in order to move the metal to a different warehouse. On 18 April, the same person decides to re-warrant the metal on a global metal exchange. A person specified in the Trade Licence is permitted to acquire the new warrant relating to that metal and, since the metal was under warrant at 23:59 on 12 April 2024, they are able to take delivery of that metal in a third country and change its location. The metal remains banned for import into the UK.
Record keeping and notification requirements
Record keeping
The Licence includes requirements to keep a record of each act carried out under its authority. The Licence sets out which details are required to be recorded.
Records required by the Licence must be kept for a period of 4 years beyond the end of the calendar year in which the record was created. A person who is subject to the record keeping requirement must permit such records to be inspected and copied by any person authorised by the Secretary of State.
After 23:59 on 12 April 2024, the Trade Licence requires that a person who cancels or withdraws (or requests or orders the cancellation or withdrawal of) a warrant acquired under the Licence must keep records of:
- the unique warrant reference, in the form prescribed by the relevant global metal exchange
- a full description of the metal to which the warrant relates
- the date on which the cancellation or withdrawal was requested or ordered and the date the warrant was cancelled or withdrawn
- the date on which the warrant was acquired
- if the warrant was acquired for the Licence user’s own or another’s account
- the global metal exchange the warrant is being cancelled or withdrawn from
- the Licence user’s name and address
- a copy of the Certificate of Analysis for the metal to which the warrant relates or equivalent evidence of production prior to 23:59 on 12 April 2024
Notification
Persons acting under the authority of the Trade Licence should notify the Secretary of State for the Department for Business and Trade, providing their name (or organisation name), EORI number (where applicable) and the address at which the records may be inspected, no later than 30 days after first acting under the authority of the Licence.
This only needs to be done once, by emailing records.importlicences@businessandtrade.gov.uk. Details should be updated if there are changes by emailing the same address.
Monitoring and enforcement
The relevant enforcement body may take enforcement action in relation to a breach of regulation 46IH of the Russia Regulations in the event they are satisfied that the person who acquired the warrant knew, or had reasonable cause to suspect, that the metal was produced after 23:59 on 12 April 2024.
Please note the Trade Licence will be kept under review, including in response to ongoing monitoring of trade flows and trade practices. The Secretary of State has the power to vary, revoke or suspend this licence at any time.
Individual licence
An individual licence may also be granted under certain circumstances. Please refer to the statutory guidance and the notice to importers for further information.
Products listed in Schedule 3BA
| Commodity code | Description |
|---|---|
| 74 | Copper and articles thereof |
| 75 | Nickel and articles thereof |
| 76 | Aluminium and articles thereof |
| 78 | Lead and articles thereof |
| 79 | Zinc and articles thereof |
| 80 | Tin and articles thereof |
| 8101 | Tungsten (wolfram) and articles thereof, including waste and scrap |
| 8102 | Molybdenum and articles thereof, including waste and scrap |
| 8103 | Tantalum and articles thereof, including waste and scrap |
| 8104 | Magnesium and articles thereof, including waste and scrap |
| 8105 | Cobalt mattes and other intermediate products of cobalt metallurgy, cobalt and articles thereof, including waste and scrap |
| 8106 | Bismuth and articles thereof, including waste and scrap |
| 8109 | Zirconium and articles thereof, including waste and scrap |
| 8110 | Antimony and articles thereof, including waste and scrap |
| 8111 | Manganese and articles thereof, including waste and scrap |
| 8112 | Beryllium, chromium. hafnium, rhenium, thallium, cadmium, germanium, vanadium, gallium, indium and niobium (columbium) and articles of these metals, including waste and scrap |
| 8113 | Cermets and articles thereof, including waste and scrap |
| 82 | Tools, implements, cutlery, spoons and forks of base metal; parts thereof of base metal |
| 83 | Miscellaneous articles of base metal |