China boosting purchases of Russian metals
The US and its allies have been targeting Russian base metals in an effort to cut the country's revenues amid the Ukraine conflict. China has become a key buyer of Russian commodities, with overall trade between the two countries hitting historic highs last year, exceeding $240 billion.
Imports of Russian aluminum jumped nearly 56% year-on-year to almost one million tons between January and May, while copper purchases surged 66% and nickel imports more than doubled, according to Trade Data Monitor, cited by the outlet on Monday.
The report noted that while Russian producers Rusal and Norilsk Nickel are not under Western sanctions, their access to global trading platforms has been restricted.
In April 2024, the US and UK barred the London Metal Exchange (LME) and Chicago Mercantile Exchange (CME) from accepting new Russian-origin aluminum, copper, and nickel and barred imports of the metals. Washington had earlier imposed 200% duties on Russian-made aluminum products, while Canada enacted a full ban on imports of Russian aluminum and steel.
Earlier this year, the EU introduced a phased ban on Russian aluminum, setting a 275,000-ton quota that runs through February 2026.
The Kremlin has condemned the sanctions as 'illegal,' warning they will backfire on those imposing them. The measures triggered spikes in global metal prices, with aluminum seeing its biggest surge on the LME in decades. Moscow has redirected exports to Asia and the Middle East amid the shift away from Western markets.
People familiar with the matter told Bloomberg that Norilsk Nickel began boosting sales to China in the second half of 2024. The company is also reportedly working with a unit of Chinese gold giant Shandong Gold to expand copper cathode shipments to the country.
Sanctioned producers such as Russian Copper and UMCC may also be shipping metal to China, the sources said.
Norilsk Nickel's chief executive, Vladimir Potanin, has said the company plans to relocate some copper smelting operations to China to safeguard exports from sanctions pressure on financial transactions.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Russia Today
an hour ago
- Russia Today
Putin touts historic ‘very friendly' Russia-US ties
Russia has had long periods of amicable relations with the US and supported America at key junctures in its history, President Vladimir Putin has said. In an interview with journalist Pavel Zarubin, a clip of which was released on Sunday, Putin offered an upbeat take on Russia's longstanding ties with Washington despite the recent tensions in relations over the Ukraine conflict. 'By the way, as for the Americans, we have had… over a very long period of time, very friendly and special relations with the United States,' Putin said. Putin pointed to Russia's support for the US push to break from British rule during the American Revolutionary War from 1775 to 1783. 'We really supplied them, even supplied weapons, helped with money, and so on.' He also referenced Russia's alignment with the Union during the 1861-1865 American Civil War. 'Later we supported the North during the war between North and South,' Putin said, adding, 'And in this sense, we found something that united us.' The comments come as US President Donald Trump has been seeking to broker an end to the Ukraine conflict. Moscow and Washington have been exploring ways to repair relations that hit historic lows under the previous administration. Despite major periods of rivalry, the history between Russia and the US is dotted with notable moments of partnership. Apart from the instances mentioned by Putin, the two countries engaged in bustling economic cooperation in the 1930s, which helped the Soviet Union to industrialize while aiding US businesses reeling from the Great Depression. The two nations then became wartime allies in World War II, fighting Nazi Germany and coordinating under the Lend-Lease program, which saw Washington make large shipments of arms and supplies to Moscow. While the Cold War ushered in decades of tension, which climaxed during the 1962 Cuban missile crisis, the US and Soviet Union still managed to negotiate landmark arms control deals aimed at reducing the threat of nuclear war.
Russia Today
11 hours ago
- Russia Today
South Korea to give citizens free money
South Korea is launching a sweeping cash handout program, offering what officials have described as 'consumption coupons' to boost domestic spending and reinvigorate the country's sluggish economy, the Korea Herald has reported. The initiative is part of a 31.8 trillion-won ($23.3 billion) supplementary budget passed by the National Assembly on Friday. The program is scheduled to begin on July 21 and will run through September 12. 'We will ensure thorough preparations for the rollout of these payments so that they can serve as a catalyst for economic recovery by boosting consumption and supporting those in need,' said Vice Interior Minister Kim Min-jae, who leads the interagency task force overseeing the initiative. All citizens residing in South Korea as of June 18 will receive a one-time payment of 150,000 won ($110). Disbursements will be made via credit or debit cards, prepaid cards, or local government-issued gift certificates. Additional support will target vulnerable groups. Near-poverty households and single-parent families will receive 300,000 won ($220), and recipients of the basic living allowance will get 400,000 won ($290). Those living in rural areas will receive an additional 50,000 won to promote 'balanced regional development,' according to the Interior Ministry. A second round of payments, planned between September 22 and October 31, will provide 100,000 won ($73) to the bottom 90% of income earners. Eligibility will be determined based on national health insurance premiums, with details to be announced in September. South Korea, Asia's fourth-largest economy, narrowly avoided a technical recession in 2024 as growth stalled in the second half of the year, following a contraction in the second quarter and a weak recovery in the third. The downturn has been widely attributed to domestic political instability, culminating in the impeachment of then-president Yoon Suk Yeol on insurrection charges after he briefly imposed martial law in December. Newly elected President Lee Jae-myung, who took office on June 4, introduced a stimulus package that includes cash assistance and digital vouchers, and pledged investment in AI infrastructure to promote growth. Some economists, however, have warned of possible inflationary effects and long-term risks to fiscal health, since the Finance Ministry plans to fund the stimulus measures through new debt, projecting a fiscal deficit of 4.2% and national debt at 49.1% of GDP.
Russia Today
13 hours ago
- Russia Today
Member state blocks EU's new Russia sanctions
Slovakia has blocked the EU's 18th round of sanctions targeting Russia for the second time due to concerns about the planned phase-out of Russian energy, Slovak media has reported, citing the Foreign Ministry. According to TASR news agency, Bratislava vetoed the package on Friday during a vote by the EU's Committee of Permanent Representatives. The ministry said Slovakia will continue to oppose the package until it receives firm guarantees from Brussels that the phase-out will not harm its economy. The dispute centers on the European Commission's RePowerEU plan, which aims to eliminate Russian energy imports by 2028. The plan is being discussed alongside the new sanctions package targeting Russia's energy and financial sectors. While Brussels reportedly plans to present the phase-out as trade legislation – requiring only a qualified majority – Slovak Prime Minister Robert Fico insists it should be treated as sanctions, requiring unanimous approval. The Foreign Ministry said the Slovak authorities, energy companies, and industry leaders consider the phase-out 'a major challenge for the competitiveness of the economy, especially from the perspective of energy prices and energy security.' It added that while Bratislava is open to further talks, the current negotiations have not addressed its 'fundamental concerns and reservations.' It stressed the need for a plan that 'benefits citizens and businesses.' A group of European Commission experts reportedly arrived in Slovakia this week for talks on energy. Fico previously warned that the phase-out would jeopardize energy security and raise prices. He also cited the risk of arbitration with Russia's Gazprom if Slovakia breaks its long-term contract, which could cost up to €20 billion ($23 billion) in penalties. Hungary also opposes the plan. Foreign Minister Peter Szijjarto said Budapest and Bratislava jointly blocked the package at last week's foreign ministers' meeting, warning that the energy cuts would 'destroy Hungary's energy security' and cause sharp price hikes. The European Commission unveiled its 18th sanctions package in early June, framing it as an attempt to pressure Russia to end the Ukraine conflict. The proposed measures include lowering the Russian oil price cap from $60 to $45 per barrel, banning the future use of the Nord Stream pipeline, restricting imports of refined products made from Russian crude, and sanctioning 77 vessels which the West claims are part of a so-called Russian 'shadow fleet'. The bloc also extended existing sanctions for another six months earlier this week. Moscow has condemned the sanctions, calling them illegal and counterproductive. Russian officials warned that the EU's rejection of Russian energy will force it to rely on costlier imports or rerouted Russian energy via intermediaries, driving up prices.
