LME Refines Restrictive Measures; Global Aluminum Trade Flows May See Adjustments

News from February 24. Last Friday, the London Metal Exchange (LME) formally issued Notice No. 26/052. It further clarified restrictions on Russian aluminum entering the European Union. It also specified rules for related warrant management. This move aims to keep up with EU sanctions against Russia. It also ensures compliance with its warehouse network and trading activities.

The notice sets clear requirements. Starting February 26, 2026, Russian aluminum entering the EU must strictly follow the “February Restrictive Measures”. More importantly, imports of Russian aluminum into the EU will be completely banned from December 31, 2026. This step means EU sanctions on Russian aluminum will enter a fully tightened phase.

It is worth noting that the LME has made a cautious prediction about the market impact of these restrictions. EU sanctions on Russian aluminum took effect in February 2025. Since then, no LME-approved warehouses in the EU have accepted Russian aluminum cargoes. This means there is currently no Russian aluminum inventory in the EU LME warehouse system. Based on this situation, the LME clearly stated its view. The restrictions in Notice No. 26/052 are not expected to affect global commodity markets or aluminum prices significantly.

However, the LME also pointed out a key point. The transition period for EU sanctions on Russian aluminum is gradually ending. The exchange must take further targeted actions. It needs to ensure its global warehouse network operates in compliance. This is especially true for warehouses in the EU. It also needs to ensure related metal trading activities comply with all EU sanctions. This will help avoid compliance risks.

It is understood that Notice No. 26/052 is not a new sanction. It supplements and improves the LME’s relevant announcements in 2024. Its core addition is the requirements for registered warrants of Russian aluminum. These new requirements only apply to all LME-approved warehouses in the EU. They do not involve warehouse facilities in other regions. Previously, the LME issued Notice No. 24/171 in April 2024. It set phased rules for the creation and holding of Russian metal warrants. This new notice focuses more on the EU region. It also refines compliance management requirements.

Industry insiders expressed their opinions. The LME’s notice is essentially an adaptation to the implementation of EU sanctions. Currently, there is no Russian aluminum inventory in the EU. For this reason, it is really difficult to cause obvious market fluctuations in the short term. But in the long run, the full ban will take effect at the end of 2026. Global aluminum trade flows may undergo structural adjustments. We need to continuously pay attention to the subsequent implementation of relevant policies and market feedback.